Early conversations highlight how staking, governance, and programmability could reshape the XRP Ledger as XRP activity expands across institutional and DeFi markets.
A new technical discussion led by RippleX Head of Engineering J. Ayo Akinyele and outgoing Ripple CTO David Schwartz has revived questions about how the XRP Ledger (XRPL) might evolve to support native staking and expanded DeFi functionality. Though both leaders stressed the ideas are exploratory, the debate reflects XRPL’s growing use across tokenization, settlement, DATs, and institutional markets — reinforced by last week’s launch of the first pure spot U.S. XRP ETF.
XRPL’s Expanding Role Sparks Incentive Model Debate
Akinyele noted that XRP now underpins tokenized assets, real-time value transfer, and emerging DeFi applications, which naturally leads to questions about future participation and incentives. He explained that staking in other networks gives holders a financial role in governance but warned that it introduces new fairness and distribution challenges.
He highlighted that XRP’s long-standing design philosophy avoids financial incentives, instead rewarding validators through reputation and reliability. Under the current model, fees are burned, not redistributed, meaning any staking design would require rethinking core mechanics.
Akinyele said native staking would need “a sustainable reward source and a fair distribution method.” Possible ideas include redirecting programmability-related fees into a staking rewards pool. However, he emphasized that XRPL’s Proof of Association model has remained stable for over a decade, and any change must preserve that reliability.
He also noted that ecosystem players like Uphold, Flare, Doppler Finance, Axelar, and MoreMarkets are already experimenting with staking-like mechanisms without altering the XRPL protocol — evidence that innovation is happening at the edges.
David Schwartz: Time to Rethink a 2012-Era Model
Schwartz, who steps down as CTO at year-end, said his views on governance have evolved, adding that programmability initiatives make this an ideal moment to explore new designs. He outlined two technically appealing but difficult-to-implement concepts:
• A two-layer consensus model, where a smaller, stake-based inner validator set advances the ledger, while the existing outer layer oversees governance, fees, and amendments. This could increase diversity and speed without compromising reliability.
• Using transaction fees to fund zero-knowledge proofs that verify smart contract execution, allowing nodes to skip running contracts directly while still guaranteeing correctness.
Community members raised concerns about validator incentives, fee dynamics, and unwanted competition. Schwartz responded that slashing and layered oversight could mitigate risks but questioned whether the potential efficiency gains justify the complexity.
Both Akinyele and Schwartz stressed that these discussions are not proposals, but part of a broader effort to understand how staking, governance incentives, and expanded programmability might shape XRPL’s long-term trajectory. As XRP’s role in institutional and DeFi ecosystems grows, examining what to preserve and where to innovate will be critical — and Ripple leaders say community input is central to that process.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.