On the first day of each month, Ripple releases 1 billion XRP tokens from the XRP Ledger's escrow system. This January 1, the company will unlock $620 million worth of XRP across three transactions: 100 million, 400 million, and 500 million XRP.
This unlock represents 1.84% of XRP’s current circulating supply (53.56 billion) and 2.17% of Ripple’s remaining escrowed holdings (45.87 billion). The escrows are scheduled to continue monthly releases until May 2027.
January 2024 Unlock Details
Escrow Addresses:
- Ripple (22): Releases 500 million XRP (locked since November 2019).
- Ripple (23): Releases 100 million (December 2019) and 400 million XRP (November 2019).
- Future Escrows: These addresses hold 2 billion XRP for unlocks through March 2024.
👉 Explore Ripple’s escrow transactions
Ripple’s December 2023 Token Management
- Unlocked: 1 billion XRP on December 1.
- Relocked: 800 million XRP (80%) into new escrows (finalizing April–May 2027).
- Spent: 310 million XRP ($192 million) via weekly sell-offs from the ‘Ripple 1’ address.
Transactions:
- December 1: 200 million XRP moved to reserves.
- December 6–27: Four payments totaling 310 million XRP to address ‘rP4X2…Kxv3’.
How Ripple’s Escrow System Works
- Total Supply: 100 billion XRP (80 billion held in escrow since 2017).
- Release Mechanism: 1 billion XRP unlocked monthly for 55 months (extended via relocks).
- Purpose: Controlled supply inflation to stabilize market dynamics.
👉 Learn about XRP’s economic model
FAQs
Q1: Why does Ripple unlock XRP monthly?
A: To ensure predictable token circulation and avoid market flooding.
Q2: How much XRP remains in escrow?
A: 45.87 billion XRP, with releases continuing until 2027.
Q3: Does Ripple sell all unlocked XRP?
A: No. Recent data shows 80% relocked, with partial sales (e.g., 310 million XRP in December).
Q4: How does this affect XRP’s price?
A: Controlled releases aim to balance supply and demand, but sell-offs can create short-term volatility.
Key Takeaways
- Ripple’s escrow system ensures disciplined XRP circulation.
- Monthly unlocks impact supply inflation and investor sentiment.
- Transparency in transactions (via XRP Scan) aids market analysis.
Disclaimer: This content is for informational purposes only and not investment advice. Cryptocurrency investments carry risk.