Ripple temporarily deposited 55 billion XRP tokens on escrow account, and thereby will limit the offer cryptocurrency in the market. This was reported on the website of the company.
According to company representatives, this step will provide monetary stability in the ecosystem of Ripple, and will give investors confidence that the market will not be flooded with unnecessary offer token XRP.
Total supply tokens, XRP is 100 billion, but currently in circulation circulates only 38,3 billion:
Limiting the supply 55 billion XRP tokens (which currently amounts to about $14 billion) in the long term positive impact on the price of the cryptocurrency.
“Today, we fully eliminate the uncertainty [in the market], placing 55 billion XRP on cryptographically secured escrow account by the end of 2017”, — reported on the Ripple website.
According to the company, when you Deposit funds into escrow account will involve smart contracts are designed so that upon the occurrence of specified conditions will be released when part of the “frozen” funds. So, every month for 4.5 years from the escrow account will be exposed to the market 1 billion XRP tokens.
“We want to give the assurance that the technology Ripple Consensus Ledger is the most reliable and tokens XRP — the most liquid and I think this is a very positive step in this direction,” said Ripple CEO brad Garlinghouse in comments to CoinDesk.
Currently, the market cap of Ripple is $12.5 billion, however, in contrast to bitcoin and other cryptocurrencies in circulation is a smaller part of the token.
We will remind, earlier Ripple has published on its website the cost model to ensure that the technology offered by the company able to reduce costs of banks several times.