Simply put
- RippleX’s J. Ayo Akinyele shared initial ideas for enabling native staking on the XRPL, addressing reward distribution and necessary protocol changes.
- CTO David Schwartz suggested two overarching models; one involves a double-layer validator system, while the other uses zero-knowledge proof pricing.
- Executives warned that although staking is theoretically possible, its complexity and potential design risks mean it’s not close to being implemented.
Ripple executives have started to explore the idea of integrating XRP into the DeFi space by introducing staking options on their blockchain. This would help align interests between validators and token holders.
The concept was initially proposed by J. Ayo Akinyele, who leads engineering efforts at RippleX, a project focused on supporting developers on the XRP Ledger.
Akinyele wrote, “A natural question arises when considering how XRP’s utility can continue to expand with new features,” in a recent blog post.
They are contemplating whether the XRP Ledger could support native staking and how this could benefit native tokens within its design and protocols.
Akinyele added that staking could enhance security by encouraging long-term involvement and rewarding participants who aid in maintaining the network.
To implement staking, he noted a need for a “source of staking rewards” and “fair distribution,” which would likely require significant restructuring at the foundational level.
Staking essentially involves locking up specific cryptocurrency assets to secure a network, allowing users to earn rewards set by the protocol.
Typically, staking also involves redistributing transaction fees consumed by the XRPL, maintaining supply stability and efficient network operation.
The XRP Ledger was designed with a focus on efficient global value transfer, particularly for cross-border payments. Akinyele believes this approach will help XRP maintain its edge, even as it’s adopted by digital asset treasuries and ETFs.
However, the introduction of staking might challenge the fundamental principles of the ledger, particularly the proof of association mechanism that emphasizes trust and stability over financial incentives.
Despite these hurdles, David Schwartz put forth two conceptual frameworks for adding staking to the XRPL.
The first is a dual-layer consensus model which features an incentivized inner layer.
This model would involve about 16 validators in an “inner” layer, selected by the “outer” layer based on staking. Schwartz explained that ledger operations would be managed through a staking and slashing mechanism to minimize problems like double signatures.
The outer layer involves current validators without a staking component, responsible for overseeing changes and fees while monitoring the inner layer.
The second model maintains the current consensus structure but utilizes fees for zero-knowledge proofs. This proof allows for verification of statements without sharing additional information, facilitating untrusted verification.
While Schwartz noted these proposals are “technically promising,” he cautioned that they are not currently “practical” due to complexity, effort, and associated risks, potentially dampening enthusiasm for staking.
As for XRP, recent CoinGecko data indicates it’s risen by 0.2% over the last 24 hours, currently trading at $2.13.
