Ripple cites 2017 escrow as safeguard against sudden XRP price drops

Ripple Labs, the US-based blockchain company behind XRP, structured its original escrow arrangement to mitigate the risk of steep price declines from large token releases, according to documentation dating back to 2017. In May 2017, Ripple placed 55 billion XRP—roughly half of the total token supply—into a cryptographically protected escrow system. The arrangement divided these holdings into 55 separate monthly contracts of 1 billion XRP each, with each contract set to expire sequentially beginning January 2018. Ripple stated that the escrow scheme would offer greater predictability regarding future XRP supply and restrict Ripple’s access to tokens to clear, pre-set amounts each month. The company outlined that released XRP would primarily be used to incentivize market makers and enhance liquidity, as well as for sales to institutional buyers.

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