Home CryptocurrencyAnalysis Ripple CTO discusses XRP distribution and who controlled 99% of supply on Genesis

Ripple CTO discusses XRP distribution and who controlled 99% of supply on Genesis

by SuperiorInvest

The initial distribution of cryptocurrencies like XRP has always been a hot topic for investors in the crypto community. Many times, discussions arise from the fact that investors believe that there was some foul play on Genesis, where some people received an unfair share of the token supply.

The latest coin that is under scrutiny is the XRP token, with community members asking questions about some events that took place on Genesis. As a result, Ripple CTO David Schwartz has taken it upon himself to clarify these issues.

What happened to the Genesis block?

David Schwartz first came under fire from the Bitcoin community with a tweet earlier this week in which he mocked the opinion of a Bitcoin maxi he allegedly had a conversation with. This conversation, in which Bitcoin maxi had apparently called XRP useless, and Schwartz mocked the opinion as useless, would quickly turn into a debate over the legitimacy of

In response to Schwartz’s post, X user @MetaMan_X asked Ripple’s CTO if there was any other blockchain that had lost its entire genesis block. Now, for those who don’t know, the XRP Ledger starts at #32,569 instead of #1, as you would expect from a blockchain. This has always been a point of discussion since

Ripple’s CTO, however, defended the XRP Ledger by saying: “The choice of what to consider the genesis block is arbitrary.” Furthermore, he compared the blockchain to the Ethereum blockchain and said that the world’s second-largest cryptocurrency also had similar problems at the beginning.

He points to a single transaction involving over $6 million in ETH that apparently makes no sense as an original. Schwartz explains that even Ethereum had transactions that were not on the blockchain, and he would know this because this massive transaction was carried out by himself.

Token price struggles to keep up | Source: XRPUSD on Tradingview.com

How was the XRP supply distributed on Genesis?

Schwartz continued to defend the XRP Ledger from those who asked him to provide any transactions included in the genesis block. According to him, no transactions were actually included in the Genesis block. Furthermore, of the 32,570 ledgers currently missing from the blockchain, Ripple’s CTO revealed that there were only 534 transactions in those blocks. So now all those transactions are supposed to be lost with those initial blocks.

Another piece of information that Ripple’s CTO provides is how the total supply of XRP was initially distributed at the beginning. Apparently, the founders had received 20% of the total supply at the beginning, with Jed McCaleb and Chris Larsen getting 9% of the total supply each. Then a third founder, Arthur Britto, received 2%, completing the 20% allocation to the founders.

The vast majority of the supply would go to the company OpenCoin (now known as Ripple), and 99.99% would be sent to the company’s wallets. Then, the remaining 0.013% would end up going to Beta testers and blockchain developers.

This revelation provides insight into how the distribution of XRP was handled and why Ripple owns such a large portion of the supply. The company currently releases 1 billion coins from escrow each month, with 200 million tokens held for the cost of operations and 800 million returned to escrow.

Featured image from YouTube, chart from Tradingview.com

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