The commitment of Ripple to place 55 Billion Ripple or XRP in a cryptographically secured escrow account is now complete. This means that certainty of XRP supply is now set.
The market seems to have concerns that Ripple could flood the market. This scenario is of course bad for Ripple's value. Therefore Ripple is building XRP liquidity and a healthy and trusted market.
Here’s how the escrow works:
The Escrow feature in the XRP Ledger allows parties to secure XRP for an allotted amount of time or until specific conditions are met.
Ripple will use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54. As each contract expires, the XRP will become available for Ripple’s use.
Ripple will return whatever is unused at the end of each month to the back of the escrow rotation. For example, if 500 Million XRP remain unspent at the end of the first month, those 500 Million XRP will be placed into a new escrow account set to expire in month number 55. For comparison, Ripple has sold on average 300 Million XRP each month for the past 18 months.
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