Ripple’s XRP escrow system limits market supply, 35.9 billion still locked

Ripple developed its XRP escrow system with a clear objective: to safeguard the cryptocurrency’s price by preventing large quantities from flooding the market at once. The company introduced this structure in May 2017, locking 55 billion XRP in escrow contracts to ensure sustainable supply management. Ripple is a US-based blockchain technology firm known for the development of both the XRP Ledger and the digital asset XRP. The escrow system utilized by Ripple comprises 55 sequentially expiring contracts, each containing 1 billion XRP. These contracts are scheduled to expire on the first day of each month. Once a contract expires, any remaining XRP not used or sold within that month is returned to escrow, restarting the 55-month cycle.

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