• XRP Ledger’s design prioritizes fast, low-cost transactions, destroying fees rather than rewarding validators.

• Recent talks highlight a shift toward programmability and institutional tools like spot ETFs.

• Schwartz’s concepts include inner-layer staking with 16 validators, potentially boosting resilience while maintaining efficiency; no immediate implementation planned.

Explore XRP Ledger native staking possibilities as Ripple’s CTO discusses adaptive consensus models for DeFi growth. Learn about two-layer approaches and ZK incentives shaping XRPL’s future—vital for crypto investors today. Read now!

What is XRP Ledger Native Staking?

XRP Ledger native staking involves exploring ways for XRP holders to participate in network security and earn rewards directly on the XRPL, distinct from traditional proof-of-stake systems. Ripple CTO David Schwartz has indicated that while the ledger’s original 2012 architecture focuses on efficient payments with fee destruction instead of rewards, evolving DeFi applications and tokenization demands are prompting a reevaluation. This could introduce incentive structures without compromising the network’s speed or low costs.

How Could Native Staking Enhance XRPL Functionality?

The XRP Ledger, launched in 2012, was built for rapid cross-border payments and asset transfers, relying on a unique consensus protocol that avoids energy-intensive mining or stake-based validation. Transaction fees are burned to prevent spam, not redistributed as rewards, setting XRPL apart from proof-of-stake blockchains like Ethereum. As DeFi expands on XRPL—seen in integrations with platforms such as Flare for yield-bearing assets and Axelar for cross-chain liquidity—experts argue for native incentives to attract more developers and users.

David Schwartz, Ripple’s Chief Technology Officer, recently shared insights on Twitter, noting how the blockchain landscape has transformed since XRPL’s inception. His views on governance and consensus have evolved, driven by XRP’s growing use in decentralized applications and protocols. For instance, the launch of the first XRP spot ETF by Canary Capital marks a milestone in institutional adoption, potentially increasing on-chain activity for tokenized treasuries and money-market funds, according to blockchain researcher J. Ayo Akinyele.

Akinyele emphasized XRP’s established roles in payments, settlement, and liquidity provision, suggesting that ETF approvals signal broader engagement from traditional finance. Data from Ripple’s quarterly reports shows XRPL processing over 1,500 transactions per second at peak, underscoring its scalability. Yet, without native staking, XRPL risks lagging behind chains offering yield to holders, prompting Schwartz’s exploration of hybrid models.

Schwartz clarified key differences: XRPL validators are not selected by token holdings, ensuring decentralization without economic barriers. Introducing staking would require defining reward sources—possibly from a portion of fees or new emissions—and fair distribution to avoid centralization. Community discussions, including input from long-time contributor Vet, highlight challenges in applying staking to XRPL’s federated Byzantine agreement, where consensus rounds close in seconds.

Frequently Asked Questions

Can XRP Holders Stake on the XRP Ledger Today?

Currently, native staking is not supported on the XRP Ledger, as its consensus model does not rely on token-locked validation like proof-of-stake networks. XRP holders can engage in liquidity provision on DeFi platforms built on XRPL extensions, such as Flare, to earn yields indirectly. Ripple CTO David Schwartz has discussed future possibilities but emphasized no near-term changes to the core protocol.

What Are the Potential Benefits of Native Staking for XRPL Users?

Native staking on the XRP Ledger could reward holders for securing the network, potentially increasing XRP’s utility and value retention. It might enable faster adoption in institutional DeFi by offering yields comparable to other assets, while preserving XRPL’s low fees and high throughput. As Schwartz explained, innovative models like ZK-proof incentives could offload computations, making the ledger more efficient for smart contracts without full node burdens.

Key Takeaways

• Evolving XRPL Design: The 2012 ledger’s payment focus is adapting to DeFi via concepts like native staking, driven by ETF launches and cross-chain growth.
• Two Technical Proposals: A two-layer consensus with staked inner validators and ZK-proof fee repurposing aim to enhance incentives without slowing transactions.
• No Immediate Changes: Schwartz stresses these ideas are exploratory; focus remains on resilience and low-cost asset movement for users.

Conclusion

The discourse around XRP Ledger native staking underscores the network’s adaptability in a maturing crypto ecosystem, where XRPL functionality enhancements could bridge payments and DeFi more seamlessly. With insights from Ripple CTO David Schwartz and community experts like J. Ayo Akinyele and Vet, XRPL positions itself for sustained relevance amid rising institutional interest. As tokenization and ETFs gain traction, stakeholders should monitor protocol amendments for opportunities that bolster security and yields, ensuring XRP remains a cornerstone of efficient global finance.

XRP Ledger was created in 2012. The world of blockchain has changed many, many times over since then.

My own thoughts on governance and consensus models have evolved. I’ve been mulling over how XRP is used in DeFi (both organically with apps and protocols like Flare,…

— David ‘JoelKatz’ Schwartz (@JoelKatz) November 18, 2025