Ripple Developer Suggests Exploring Native XRP Staking After ETF Launch - Crypto Economy

TL;DR

• A Ripple developer suggests exploring native XRP staking, because new institutional demand is reshaping the ecosystem’s priorities.
• The launch of a Canary Capital ETF with more than $257 million is driving a discussion about expanding the token’s utility.
• Introducing a rewards system requires rethinking the protocol’s design to ensure fair distribution without generating governance conflicts.

The debate over potential native XRP staking gained momentum after a Ripple engineering director evaluated how such a feature could expand the token’s utility and change how the XRP Ledger operates.

The proposal is grounded in a concrete reality: the token has powered payments, liquidity and tokenized assets for more than a decade, and now it is attracting significant institutional attention following the launch of several ETFs, including a Canary Capital fund that already holds more than $257 million in investments.


Does XRP Need Staking Features?

The XRPL was built with a design distinct from networks like Ethereum or Solana. The chain burns transaction fees instead of redistributing them, and validators participate based on reputation, trust and influence over protocol development. Introducing a staking system would require rethinking this model and establishing a sustainable source of rewards, whether through new fees tied to programmability or another mechanism that preserves the current balance.

Every decision would affect the relationship between validators and token holders, because introducing monetary incentives reshapes governance and the incentive structure of the system.


Rewards and Distribution of Power

The proposal identifies two essential requirements: a source of rewards and a fair, transparent distribution method. The design must guarantee open and verifiable participation while avoiding distortions that could concentrate power or create coordination problems among validators. A poorly calibrated model could transform a structural advantage of the XRP Ledger into a weakness, especially if governance begins to depend on capital rather than the track record of validators.

Several protocols are exploring lowering their staking yields to curb token inflation. Part of the XRP community is experimenting with third-party alternatives such as Uphold, Flare, Doppler Finance, Axelar and MoreMarkets. If these services grow, they could absorb demand for native staking tools without modifying the core architecture of the ledger.

The analysis goes far beyond adding a new feature; it is a reflection on how a network maintains both efficiency and decentralization.