XRP Ledger Congestion Could Burn 1 Billion Coins Annually, Developer Claims

Vincent Van Code, a software engineer and AI startup founder, suggests that current projections for XRP burns are underestimated. This is because they assume today's low transaction fees will persist even with heavy network use.

Potential Increase in XRP Burns Due to Load Factors

Van Code argues that sustained congestion on the XRP Ledger (XRPL) could significantly increase fees through load-scaling mechanics, potentially burning up to one billion XRP annually.
He highlights that the commonly cited base fee of 0.00001 XRP only applies during low network activity.
Van Code's "Supply Meltdown" simulation shows how fees and burns could escalate dramatically under full network load:
Under "global adoption" conditions at full capacity (3,400 TPS), daily transactions could reach 293 million, burning an estimated 2,937 XRP at the base fee.
With increased congestion, fees could rise to 0.001 XRP per transaction, leading to approximately 293,760 XRP burned daily.
In extreme "full gridlock" scenarios with fees at 0.01 XRP, daily burns could reach 2,937,600 XRP.

The XRPL fee structure destroys fees instead of distributing them to validators or entities like Ripple, which Van Code emphasizes as key to understanding its deflationary potential.

At the time of reporting, XRP was trading at $1.88.

XRP price chart