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XRPL Community Debates Transaction Costs and Price Manipulation

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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 difference…

XRPL Community Debates Transaction Costs and Price Manipulation

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

Interpretation of the news:


The chief technology officer of Ripple, David Schwartz, recently posted a social media message stating that the XRPL community is still divided on the proposal to increase transaction costs. Although Schwartz ultimately voted in favor of the proposal, he believes that using transaction costs to artificially manipulate the price of XRP is not a sound strategy.

Instead, Schwartz argues that transaction costs should accurately reflect the actual cost of using the network. By doing so, the XRPL network can allocate resources more effectively and maintain its competitive advantage as a low-cost, high-speed blockchain.

Schwartz is also wary of using artificial means to reduce the cost of node operation, as this could ultimately damage the overall value of the network. On the other hand, setting transaction costs too high could add unnecessary complexity and hinder the network’s growth.

The debate over transaction costs in the XRPL community speaks to the broader issue of price manipulation in cryptocurrency. In many cases, transaction costs can act as a tool for market manipulation, with some actors using large transaction fees to artificially drive up or down the price of a particular token.

It is therefore important for cryptocurrency developers and stakeholders to carefully consider the impact of transaction costs on market dynamics. While it may be tempting to use transaction fees as a way to exert control over the market, doing so risks undermining the legitimacy and long-term viability of the network. Instead, transaction costs should be set based on transparent and fair criteria, such as the actual cost of network operation.

In conclusion, Schwartz’s message highlights the importance of equitable and transparent transaction costs in the XRPL community. By prioritizing accuracy and fairness in setting transaction fees, the XRPL network can maintain its competitive edge and avoid the pitfalls of market manipulation.

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