In summary
- The reserve requirement to use the XRP Ledger was reduced from 10 to 1 XRP, making it cheaper to create an account on the Blockchain.
- The change makes it easier to activate accounts, especially with XRP reaching a 400% increase in the last 30 days.
- In addition to the reduction in the base requirement, the owner’s reservation fee was also lowered to 0.2 XRP, incentivizing the creation of new accounts.
Account activation on the XRP Ledger now only requires 1 an account must be maintained.
The reserve fee structure was modified on Monday night when validators approved new reserve fees on XRP Ledger, reducing the base reserve requirement from 10 XRP to 1 XRP.
“Together with other UNL Validators, we have voted to reduce XRPL Reserves!” said Aesthetes Fine Art, an XRP Ledger validator on X (formerly known as Twitter). “It’s now 10x cheaper to start trading on XRPL!”
The change makes creating an account on XRP Ledger 90% cheaper measured in XRP, making it less expensive to get started as the price of XRP has risen in recent days. XRP has soared more than 400% in the last 30 days, and previously it would have required approximately $25 in Cryptocurrency to keep an account in good standing.
Additionally, users who held accounts on the ledger will have XRP released, after previously being unusable while held for the reserve requirement.
In addition to reducing the base reserve requirement, XRP Ledger reduced the owner reserve requirement to 0.2 XRP, from the previous 2 XRP. The base reserve requirement is the fee associated with owning an object in the ledger.
In other words, for every new token or pool of NFTs owned on XRPL Ledger, an account owner needs to reserve an additional 0.2 XRP on top of the base reservation fee.
Developers in the XRP Ledger ecosystem have been debating a change to booking fees since at least October this year, citing pros and cons for a lower barrier to entry and cheaper fees.
“The number one concern would be the increase in activity on the ledger to the point where it becomes a challenge for the infrastructure. At this point, I feel like this is a good problem to have,” said Wietse Wind, leader at XRPL Labs and Xaman Wallet.
Account creation on the XRP Ledger has skyrocketed in recent days with more than 30,000 new accounts activated on Monday, marking a yearly high for the network, according to data from XRP Scan. Part of that rise may be linked to interest in memecoins minted on the XRP Ledger, which have seen rapidly rising prices in recent days.
XRP, a Ripple-pegged asset, has moved back closer to its all-time high in recent days amid speculation about XRP ETFs and greater regulatory clarity under President-elect Donald Trump. The token surpassed Tether earlier this week to become the third-largest cryptocurrency by market capitalization.
Edited by Andrew Hayward
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