Ripple Proposes Native XRP Staking After First ETF Launch
Ripple developer J. Ayo Akinyele, supported by CTO David Schwartz, has proposed native XRP staking on the XRP Ledger. The proposal follows Canary’s launch of the first XRP ETF, signaling growing institutional interest. Under the current Proof of Association model, transaction fees are burned to keep supply deflationary. Akinyele suggests reallocating fees or leveraging new programmability features to fund a staking rewards pool, aligning validator and token-holder incentives without changing the core ledger. He outlines potential staking models using tokenization tools and cites third-party yield platforms such as Flare (FLR) and Doppler Finance (DOP) as proof of concept. Emphasizing the need for robust incentive and penalty designs, he stresses maintaining ledger efficiency, security and governance balance. Native XRP staking could drive DeFi growth, digital asset treasuries and long-term price stability for XRP. Traders should monitor developments on XRP staking and ETF impacts, as these may affect market dynamics and adoption.
Bullish
Native XRP staking could strengthen market demand by offering yields, aligning with institutional interest driven by the recent ETF launch. In the short term, traders may see increased buying pressure as investors seek staking rewards on the XRPL. Over the long term, introducing staking rewards via reallocated fees and programmability features can boost network utility and DeFi adoption, potentially enhancing XRP price stability and growth. However, implementation risks, such as consensus adjustments and incentive design, introduce uncertainty. Overall, the proposal is bullish for XRP, given its potential to expand use cases and attract capital.