What Is XRP?
XRP is the currency built into the XRP Ledger, a public blockchain running since June 2012. All of it was created at the start, none can be created since, and every transaction destroys a tiny amount of it as a fee.
Key facts
| First ledger | June 2012 (xrpl.org) |
| Built by | David Schwartz, Jed McCaleb and Arthur Britto |
| At the start | 100,000,000,000 XRP, all created in the first ledger |
| In existence now | 99,985,589,356 XRP at ledger 107,756,557 |
| Destroyed by fees | 14,410,644 XRP since 2012 |
| Smallest unit | 1 drop = 0.000001 XRP |
| A new ledger | every 3–5 seconds; a transaction in a validated ledger is final |
| Minimum fee | 10 drops (0.00001 XRP), destroyed (xrpl.org) |
| Reserve | 1 XRP per account, plus 0.2 XRP for each object it owns |
| Agreement | Validators vote (consensus): no mining, no staking |
XRP and the XRP Ledger
The XRP Ledger is the network; XRP is its own currency, the way ETH is Ethereum’s. The ledger also carries thousands of tokens other people issue (stablecoins, meme coins, tokenized assets) and NFTs, but every transaction, whatever it moves, pays its fee in XRP (XRPL vs XRP).
Where the supply went
All 100 billion XRP were created in the first ledger. Soon after, the ledger’s creators gave 80 billion to a new company, then called OpenCoin and now Ripple (xrpl.org). In December 2017 Ripple locked 55 billion of it in escrows on the ledger that release up to 1 billion a month; what it does not use goes back into new escrows.
The total only shrinks. Each transaction’s whole fee is destroyed rather than paid to anyone, which has removed 14,410,644 XRP so far, and no transaction can create XRP. Where the XRP sits today: the rich list.
What XRP is used for
- Fees. Every transaction pays one in XRP, and it is destroyed.
- Reserves. An account holds 1 XRP it cannot spend, plus 0.2 XRP for each trust line, offer, NFT page or other object it owns (reserves explained).
- A go-between for trades. An order for one token against another can fill through XRP when that gives a better price (auto-bridging).
- Payments. Ripple’s cross-border payment service can use XRP as a bridge between two currencies.
- Trading. Most XRP volume is on exchanges, against dollars and stablecoins.
XRP, Bitcoin and Ethereum
| XRP | Bitcoin | Ethereum | |
|---|---|---|---|
| A new block or ledger | 3–5 seconds | about 10 minutes | 12 seconds; final after about 15 minutes (ethereum.org) |
| A simple transfer, now | $0.000013 | $0.12 at 1 sat/vB | $0.0022 at 0.043 gwei |
| How blocks are agreed | Validators vote | Mining (proof of work) | Staking (proof of stake) |
| Supply | 100 billion at the start, shrinking | 21 million cap, still being mined | No cap |
| Programs | Built-in features (exchange, AMM, NFTs, escrow); no general smart contracts | Simple scripts | Smart contracts (EVM) |
Questions
- When was XRP created?
- In 2012. David Schwartz, Jed McCaleb and Arthur Britto finished the XRP Ledger in June 2012, and all 100 billion XRP were created in its first ledger: no mining and no sale to the public.
- What is the total supply of XRP?
- 100 billion at the start. Every transaction fee is destroyed, so the total shrinks a little with each ledger: 99,985,589,356 XRP exist now. No new XRP can be created.
- Is XRP the same as Ripple?
- No. Ripple is a company; XRP is the ledger’s currency. The ledger’s creators gave the company 80 billion XRP in 2012, and it still holds a large amount, much of it in escrow, but the ledger runs without it.
- Is XRP a stablecoin?
- No. A stablecoin holds a fixed value, usually one US dollar, while the price of XRP moves with the market. Ripple’s US dollar stablecoin is RLUSD, a separate token issued on the XRP Ledger and Ethereum.
- Can you mine or stake XRP?
- Neither. Every XRP already exists, and validators agree on ledgers by voting, so there is no mining reward and nothing to stake. On the ledger, XRP earns only by being put to work, for example in an AMM pool.
- Why do I need XRP to use the XRP Ledger?
- Every transaction pays a small fee in XRP, which is destroyed, and an account must hold a reserve: 1 XRP, plus 0.2 XRP for each trust line, offer or other object it owns. The reserve for an object is freed when the object is removed.
- What is the Ripple escrow?
- In December 2017 Ripple locked 55 billion of its XRP in escrows on the ledger, set to release up to 1 billion a month. What Ripple does not use goes back into new escrows. The escrows are on the ledger, so anyone can see them.