As an analyst with over two decades of experience in the tech industry, I’ve seen my fair share of twists and turns in the blockchain world. The anticipated launch of Ripple USD (RLUSD) has certainly been one of the most intriguing developments this year.
It is anticipated that a significant advancement for Ripple‘s ecosystem will be the rollout of Ripple USD (RLUSD), a digital currency tied to the U.S. dollar, this year. Initially, both the XRP Ledger (XRPL) and Ethereum were slated as potential launch platforms.
Nevertheless, the latest reports indicate that RLUSD may debut on Ethereum this year, or possibly also on XRPL. Yet, it’s important to note that if launched on XRPL, the Automated Market Maker (AMM) functionality will not be available initially; instead, trading will be confined to the DEX orderbook.
The reason for this restriction stems from the clawback feature, which prevents the use of stablecoins within XRPL’s Automated Market Maker (AMM). Changes are currently being worked on to address this issue, such as XLS-73, which focuses on enhancing the interaction between the AMM and frozen assets, and XLS-77, a proposal to tighten the freeze for trustlines, thereby preventing blacklisted accounts from transferring RLUSD.
As a crypto investor, I find myself closely watching the developments within the XRP Ledger (XRPL) community. However, predicting exactly when proposed changes will be implemented is proving challenging due to the decentralized nature of the network and the apparent community fatigue that’s been noticed.
David Schwartz weighs in
David Schwartz, the CTO of Ripple, shared his viewpoint, stating that the XLS-77 proposal may not have as much of a “lockup period” or “cold storage” effect as some people might initially think.
When XLS-77 is applicable, rather than being transferred to blocked accounts, the assets continue in non-blocked accounts under stricter conditions. This restriction affects transactions that would normally be processed.
For your convenience, I’d like to offer a rephrase of the statement you provided:
— David “JoelKatz” Schwartz (@JoelKatz) September 30, 2024
Although advancements in technology are significant, it’s important to note that the initial launch of RLUSD might not immediately meet all expectations. Undeniably, a top-tier stablecoin is crucial for Ripple’s future growth, but it’s possible that the first version may be missing some features, which means users may need to exercise patience as improvements are made over time.
The situation became more tense as the XRP community strongly objected to the potential restrictions RLUSD might impose on XRPL, especially since it seems to be functioning entirely on Ethereum. This has been unsettling for some who harbor significant resentment towards Ethereum and its founder, Vitalik Buterin.
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2024-09-30 13:45