In early November, the Stellar Foundation blockchain startup destroyed 55 billion Stellar (XLM) worth about $ 4.4 billion. This event attracted the attention of the crypto community and generated a wave of interesting discussions.
Ripple CTO David Schwartz tweeted that he was pleased to be attending the SwellbyRipple conference. One user, saddened by the low rate of the XRP cryptocurrency, replied: “No fun here at 25 cents.” Schwartz noted that XRP is a decentralized digital asset, so no one can destroy half of the coin stock to increase the price of the token to 29 cents.
Wtf are you talking about. Ripple labs can burn half the XRP supply.
— Jed McCaleb (@JedMcCaleb) November 9, 2019
The creator of Stellar and co-founder of Ripple Lab, Jed McCaleb, has denied this information and said that Ripple is able to burn XRP. In response to this claim, David said that it makes sense to destroy XRP in the event that the company’s activities do not bring results. In his opinion, tokens should be invested in the development of the ecosystem, and not thrown into the furnace.
Schwartz admitted that there are several ways to eliminate XRP and talked about one of them. To burn tokens, they need to be sent to an address whose public code hash does not have enough entropy to search for a private key.
Charlie Lee, the developer of the Litecoin cryptocurrency (LTC), believes that the Stellar Foundation should have carried out Airdrop XLM, and not destroyed the coins. In his opinion, as a result of burning tokens, the organization increased the share of its cryptocurrency reserves from 16% to 24%, as the company liquidated only 5 billion of its coins, the remaining 50 billion were in circulation. Thus, before the destruction of the Stellar Foundation owned 17 out of 105 billion XLM, and after this procedure – 12 out of 50 billion. The Stellar Foundation press service reported that the decision to burn tokens was made as part of the implementation of a strategy aimed at developing the blockchain. Employees of the organization recorded a drop in the effectiveness of Airdrop campaigns and therefore preferred the option related to asset annihilation.
Source: en.bit.news
