Ripple’s CTO Urges XRPL Community to Avoid Artificially Manipulating XRP Price

03/06/2023 13:39 • Metaverse Matters • 84 views

It is reported that David Schwartz, the chief technology officer (CTO) of Ripple, posted a message on social media that the XRPL community still has differences on the proposal to increase transaction costs. David Schwartz said that although he voted in favor of the vote, he believed that transaction costs should not be used to artificially manipulate the price of XRP. Transaction costs should reflect the actual cost of the network, so as to allocate resources more effectively and ensure that XRPL network will not lose low costs Competitive advantages of high-speed blockchain. In addition, David Schwartz added: “If the transaction cost is lower than the actual cost, and the artificial execution cost is used to reduce the node operation, the network value will be damaged. If the transaction cost is higher than the actual cost, it is actually adding unnecessary trouble to the network.”

Ripple CTO: Although they voted in favor of the XRPL community’s proposal to increase transaction costs, they still have different opinions

Analysis based on this information:

David Schwartz, the CTO of Ripple, recently posted a message on social media addressing the XRPL community’s discussions on the proposal to increase transaction costs. While Schwartz ultimately voted in favor of the proposal, he cautioned against using transaction costs to artificially manipulate the price of XRP. Instead, Schwartz advocated for transaction costs to reflect the actual cost of the network, allowing for more effective resource allocation and maintaining the low-cost competitive advantage of the XRPL network.

Schwartz’s message underscores the importance of maintaining transparency and fair practices in cryptocurrency transactions. He expressed concern that artificially manipulating transaction costs could harm the value of the XRPL network, causing unnecessary problems for its users. By emphasizing the need for transaction costs to reflect the actual cost of the network, Schwartz encourages the XRPL community to prioritize responsible network management and long-term sustainability.

One area of concern highlighted by Schwartz is the potential impact of artificially lowering transaction costs on node operation. While low fees may seem attractive to users, this can lead to underinvestment in network infrastructure and ultimately, harm the network’s stability and value. As such, maintaining transaction fees that reflect actual network costs is crucial for promoting responsible network management and ensuring the long-term viability of the XRPL network.

In conclusion, Schwartz’s message highlights the need for responsible and sustainable network management in the cryptocurrency space. While the temptation to artificially manipulate prices may be strong, it ultimately harms the long-term value of the network and its users. By maintaining transparent and fair practices, the XRPL community can foster a healthy and sustainable environment for cryptocurrency transactions.

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