XRP Ledger Reduces Base Reserve Requirement by 90% to Enhance Accessibility
The XRP Ledger has reduced its base reserve requirement, as observed on December 2, 2024. The base reserve has decreased by 90%, from 10 XRP ($25.60) to 1 XRP ($2.56), allowing new users to create wallets with lower costs.
This change also frees up previously reserved funds for the XRP Ledger. Additionally, the owner reserve for assets like NFTs and trust lines has dropped from 2 XRP ($5.12) to 0.2 XRP ($0.51), enhancing user flexibility in managing digital assets.
XRP validator "Operator V" first noted the reserve adjustment at 10:45 PM UTC.
Major Changes to XRP Reserve Policy Aim to Drive Adoption
The changes result from collaborative efforts among XRP Ledger developers, validators, and XRPL Labs. Initial discussions focused on the pros and cons of lower versus higher reserves.
On October 16, developer WietseWind announced that all nodes under XRPL Labs were reconfigured for a lower reserve requirement, pending validator votes and a network-wide reset. With implementation complete, the consensus is that benefits outweigh risks, including potential increased ledger activity straining infrastructure.
WietseWind indicated that such challenges could be viewed positively as they suggest rising adoption. Developers acknowledge possible difficulties but express confidence in their team's ability to address them.
The original XRP reserve requirement aimed to prevent spam accounts and maintain ledger efficiency. However, critics argued that the 10 XRP base reserve discouraged new user adoption.
Hopes Up as Token Performs
This reserve cut coincides with increasing interest in XRP, which recently rose to $2.65, marking its highest value since 2018. This surge relates to optimism about XRP's use cases and may be linked to Ripple Labs' ongoing legal issues with the US Securities and Exchange Commission (SEC).
Overall, lowering the reserve will likely attract more participants to the XRP Ledger while balancing usability and infrastructure stability.