Matt Hamilton, a former director of developer relations at Ripple, has spoken on the discussion around what would happen to the company’s XRP holdings if it had to sell them. Hamilton proposed that Ripple may disable the master key on the destination account, so rendering them inactive, rendering their whole future escrow monies unreachable to even themselves.
The recommendation was made in response to worries expressed by XRP community members about the potential for Ripple to flood the market with tens of billions of XRP if the business was forced to sell the tokens kept in various escrow accounts. The possibility of burning the tokens was contested by the community, but it soon became apparent that only XRPL validators could direct the burning of XRP.
Hamilton’s suggestion provides an alternate approach that could stop Ripple from oversaturating the market with XRP. Ripple might make the money delivered from escrow unavailable by turning off the master key on the destination account. This would basically “burn” the tokens and make sure that neither Ripple nor anyone else could use them.
The discussion began with the query of whether Ripple could persuade the validators to abide by a court order. Others felt that the validators would not be bound by any order without being heard, while several in the community contended that the court could not issue a decision based on something that Ripple was dependent on persuading others to perform.
The ongoing discussion emphasises the difficulties encountered by cryptocurrency businesses as they attempt to balance the interests of investors, regulators, and the general public while navigating the regulatory environment blindly.
