David Schwartz Defends XRP Ledger’s Low Fees Against Revenue Rankings

In Brief:

• David Schwartz criticized blockchain fee revenue rankings, arguing that higher transaction charges overlook users’ interests and reward costly network activity.
• XRP Ledger has burned 14,403,762 XRP since inception, representing approximately 0.014% of its original supply through permanently destroyed transaction fees.
• An X user proposed increasing fees tenfold or one hundredfold to accelerate XRP burning while maintaining transactions below one cent.

 

Ripple CTO Emeritus David Schwartz criticized fee revenue rankings, arguing that higher blockchain charges overlook the interests of paying users. According to his response on X, fee revenue measures transaction friction that a blockchain has failed to remove for users.

Schwartz addressed an X user who proposed raising XRP Ledger’s base fee to increase the amount of XRP burned. The user argued that investors increasingly evaluate Layer 1 blockchains through fee revenue, making XRP Ledger appear comparatively small.

XRP Ledger charges transaction fees representing a fraction of a cent, while its burn mechanism permanently removes those tokens. Unlike blockchains that reward validators through transaction fees, XRP Ledger destroys the XRP users spend to process their transactions.

Consequently, the user argued that the network’s fees represent permanent supply reduction, rather than income distributed to validator operators. The proposal linked that mechanism to a broader question about whether XRP Ledger should pursue higher fees for valuation purposes.

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Higher Fee Proposal Targets Greater XRP Supply Reduction

According to XRPscan figures cited in the exchange, XRP Ledger has burned 14,403,762 XRP since its inception. This represents approximately 0.014% of XRP’s original 100 billion supply, with low transaction charges limiting the cumulative burn amount.

The user suggested that validators could vote to increase the base fee by tenfold or even one hundredfold. Under that proposal, the user argued that transactions would remain below one cent while removing more XRP from circulation.

Additionally, the user acknowledged that inexpensive, fast settlement supports XRP Ledger’s appeal for payments and tokenization applications. Schwartz challenged the emphasis on fee totals, arguing that such comparisons favor fee collectors while neglecting those funding their revenue.

He questioned whose interests those rankings serve, drawing attention to the users who bear transaction costs whenever fees increase. His response defended low transaction costs by emphasizing the financial burden that higher charges place on blockchain users. The exchange contrasted a proposal for faster XRP burning with Schwartz’s argument that fee revenue overlooks costs borne by users.

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