The News Crypto -
- Former Ripple Director Matt Hamilton suggests Ripple may have the capability to burn all XRP in its escrow wallets.
- This revelation adds complexity to Ripple’s legal battle with the U.S. SEC, as burning XRP could make future escrow funds resistant to access.
- Hamilton proposes disabling the master key for designated accounts receiving escrowed tokens.
Former Ripple Director Matt Hamilton has set the cryptocurrency community abuzz with a revelation. He stated that Ripple might wield the ability to burn all XRP stashed in its escrow wallets.
This intriguing possibility has introduced a fresh layer of complexity to Ripple’s protracted legal clash with the U.S. Securities and Exchange Commission (SEC).
The escrows are set to release to a particular address. Ripple could at any time disable the master key on the destination account. Thus rendering it inoperable. Ie when the funds released from escrow they’d be inaccessible to anyone.— Matt Hamilton (@HammerToe) May 14, 2023
Hamilton, a former Ripple Principal Developer Advocate, offered unique insights into the ongoing legal battle between Ripple and the SEC. He proposed that Ripple, leveraging its technical prowess, could render its future escrow funds practically impervious by disabling the master key for the designated accounts receiving the escrowed tokens.
This concept of “burning” XRP takes a revolutionary turn, rendering the tokens essentially unusable, even to Ripple itself.
Unpacking Legal Ripple Ramifications
The notion of burning XRP took center stage after the SEC’s recent request for the destruction of LBRY Credits (LBC) tokens in a separate lawsuit. This ignited a debate within the XRP community, questioning whether the team could be compelled to burn the XRP locked in its escrow.
Adding complexity, the firm’s CTO, David Schwartz, joined the conversation, highlighting that while the court and SEC might lack direct authority, a consensus among XRPL validators could enforce such action.
Pro-XRP lawyer Bill Morgan contributed insights, emphasizing that a court order wouldn’t automatically bind XRPL validators, necessitating a legal hearing for enforcement.
This aligns with the firm’s CEO Brad Garlinghouse’s earlier statement in April 2021, hinting at the consideration of burning XRP tokens in specific scenarios for the broader benefit of the XRP ecosystem.
As the firm navigates the intricate legal landscape, the potential decision to burn XRP tokens introduces a new dimension to its ongoing saga, revealing a strategic move in this complex chess game with the SEC.
This article was originally published on thenewscrypto.com
