Ripple CTO Clarifies No Tax on XRP Ledger Operations
A debate has emerged regarding the XRP Ledger's (XRPL) economic model, following Ripple CTO David Schwartz's comments on taxation within the blockchain. He stated that:
- There is no tax imposed on XRPL users.
- Transaction fees and reserves are anti-spam measures, not for wealth extraction.
- XRP ownership does not entitle holders to profits from the ledger’s operations.
Schwartz compared XRPL to Bitcoin’s blockchain, noting XRPL's decentralized features like Decentralized Exchanges (DEXs), stablecoins, and NFTs work without generating profits for XRP holders.
The discussion was partly triggered by Matthew Sigel of VanEck questioning who benefits if XRP holders do not earn from the ecosystem. Community responses emphasized the focus on building functional applications over passive income.
Further debates touched on real-world applications, with Sigel highlighting a gap between network activity and personal gain, despite collaborations like those involving Ondo Finance and BlackRock. Schwartz argued that XRPL’s value lies in promoting financial independence and innovation, rather than providing passive income.
