Lawyer Bill Morgan expressed his thoughts on the current XRP metrics in a post on the X social network. He emphasized that these metrics do not meet the community's expectations and sparked a discussion about the significance of XRP's large circulating supply and its impact on the asset's economy.
The discussion began with a comment from Treasury's Financial Director, Fredo Ayala, who pointed out that XRP's circulating supply significantly exceeds that of SOL. He noted that despite similar levels of inflation, the vast XRP supply was intended to enhance liquidity. However, Ayala expressed concerns about the excess of XRP, which, in his opinion, could negatively affect the asset's price and its tokenomics.
In response, Bill Morgan suggested reflecting on why the creators of XRP decided to issue precisely 100 billion XRP, rather than a smaller amount. This question initiated a conversation about the influence of the circulating supply on the asset's price and market dynamics.
Another participant in the discussion referenced an explanation from a former Ripple employee, Bob Way, regarding the numerical intricacies underlying XRP's design. Way emphasized that from a technical standpoint, both 21 million bitcoins and 100 billion XRP are represented by 64-bit integers.
Ripple's Chief Technology Officer, David Schwartz, also contributed, confirming the technical aspects underlying this decision. He emphasized that using integers is preferable because they fit within 64 bits, leaving room for a sign and additional space, which helps prevent issues related to overflow during operations. Schwartz also noted that such an approach provides clarity for users and a reasonable level of divisibility.
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