An analysis of Ripple's (XRP) token burn rate and the feasibility of supply reduction is once again drawing attention. It has been pointed out that under the current burn structure of the XRP Ledger (XRPL), it would take hundreds of thousands of years to achieve a meaningful reduction in supply.

According to cryptocurrency-focused media outlet Crypto Basic, the current total supply of XRP is approximately 99.98 billion. Of this, about 32.74 billion are held in escrow, leaving roughly 67.22 billion in actual market circulation.

The XRPL adopts a mechanism that permanently burns a portion of transaction fees. However, the current daily burn amount is only about 373 XRP, meaning the annual burned volume amounts to just approximately 138,000 XRP.

Assuming this rate continues, reducing the circulating supply from its current level to 500 million XRP would require burning an additional 66.7 billion XRP. According to the analysis, this would take approximately 480,000 years. Another calculation suggested that lowering the total supply itself to the 500 million XRP level would take about 720,000 years.

Since its launch in 2012, the XRPL has maintained its permanent fee burn mechanism, and a total of approximately 14.3 million XRP is estimated to have been burned to date.

The industry evaluated that this analysis serves as a useful reference for understanding XRP's long-term token economy and supply structure. However, some also note that the actual scale of burns could change depending on future increases in XRPL network utilization or policy changes.

[This article was written with the assistance of AI. This article does not constitute investment advice, and any losses arising from virtual asset investments are the sole responsibility of the investor.]