‘Why Not Just Burn XRP?’: Ripple CTO Doubts New XRPL Initiative

In a recent discussion regarding the future of programmability on XRP Ledger (XRPL), Evernode co-founder Scott Chamberlain proposed a new approach involving Hooks and a new token, Codii, to enhance transaction functionality. The aim is to allow smart contract execution on XRPL while maintaining manageable costs for users.

Chamberlain’s proposal introduces two key elements. First, Hooks — a flexible, low-cost system proven to support decentralized applications, such as Evernode. The system automates tasks like registration, reputation scoring and governance for network hosts, offering a seamless solution for transaction execution.

Second, Codii — a native token minted from locked XRP and burned for Hook-related fees, would reduce the financial strain on users compared to burning XRP directly for smart contract triggers.

Simplicity versus functionality

However, Ripple CTO David Schwartz expressed skepticism about the need for such complexity. According to Schwartz, simply burning XRP for all transaction fees, as done currently, could streamline operations.

He questioned the advantages of introducing Codii, pointing out that it adds burdens like managing two tokens and could lead to dilution losses for XRP holders.

This seems way overcomplicated for no benefit. What advantage does this have over just burning XRP for all transaction fees?

— David “JoelKatz” Schwartz (@JoelKatz) September 28, 2024

Chamberlain defended the proposal, arguing that burning XRP for programmability would make smart contracts too expensive if XRP appreciates. He highlighted that Codii would offer a self-sustaining system, where XRP holders could effectively cover Hook fees through inflationary balance adjustments.

Despite Chamberlain’s rationale, Schwartz maintained that any system imposing costs on users through token inflation risks complicating fee management without significant benefits.

It was also outlined that burning XRP as the sole method for transaction funding keeps the system straightforward, ensuring its accessibility as the value of XRP changes.

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