- AMM’s Potential Impact on XRP: Ripple’s upcoming Automated Market Maker (AMM) could increase the need and utility for XRP without altering its tokenomics.
- Validator Voting for AMM Amendment: The XLS-30D Amendment for the AMM is still undergoing validator consensus, with 40% support so far.
Ripple’s Vision for XRP’s Future with AMM Integration
Ripple, a leading player in blockchain technology, is gearing up for a significant enhancement to the XRP Ledger (XRPL) with the introduction of an Automated Market Maker (AMM). This development is expected to heighten the utility of XRP, as discussed by Jasmine Cooper, Lead Product Manager at Ripple.
Understanding the Impact of AMM on XRP
Cooper addressed concerns and speculations about the potential impact of the AMM on XRP’s tokenomics during an interview with Eri, a prominent YouTuber and figure in the XRP community. The primary focus revolved around whether the AMM would fundamentally change XRP’s tokenomics or transform it into a stablecoin.
Dismissing Tokenomics Change Speculations
Contrary to some assertions within the XRP community, the AMM is not expected to alter the fundamental tokenomics of XRP. Ripple’s Lead Product Manager affirmed this, emphasizing that XRP functions as a utility token for gas and account reserves on the XRPL. She reiterated,
“I really don’t think it’s going to change the tokenomics.”
The Role of AMM in Enhancing XRP’s Utility
- Boosting Need and Utility: The introduction of the AMM is poised to bring about a greater need for XRP, thereby enhancing its utility. As the crypto and blockchain space evolves, the AMM is seen as a catalyst for increased adoption and application of XRP.
- Validator Consensus for the AMM: The AMM is part of the XLS-30D Amendment, currently included in the XRPL version rippled v1.12.0. Validator voting is ongoing, with a current consensus of 40%. Among the validators, 14, including Ripple and Bithomp, have voted in favor of the amendment, while 21 retain a Nay vote.
In summary, Ripple’s introduction of an Automated Market Maker (AMM) on the XRP Ledger represents a pivotal development for XRP. This innovation is set to bolster the utility of XRP without altering its core tokenomics. As the voting for the AMM amendment continues, the XRP community and investors are closely watching the impact this development will have on the broader adoption and functionality of XRP.
Ripple’s strategic move with the AMM illustrates its commitment to enhancing the practical applications and efficiency of XRP in the dynamic world of digital finance.