XRP Account Fees Fall by 90% After XRPL Validator Vote

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Account Reserve has shifted to 1 XRP from 10 XRP, and creation fees for trustlines or objects is down to 0.2 XRP from 2 XRP.

By Shaurya Malwa|Edited by Omkar Godbole

Dec 4, 2024, 10:59 a.m. UTC

What to know:

Account Reserve has shifted to 1 XRP from 10 XRP, and creation fees for trust lines or objects is down to 0.2 XRP from 2 XRP. A drop in fees comes as account creation activity spiked on XRPL in the past days, with over 30,000 accounts created earlier on Monday, network data show.

A governance vote slashed minimum fees to open an account on the XRP Ledger (XRPL), the network that uses XRP, by 90% on Tuesday amid a multi-week price rally for the major token.

“Together with other UNL Validators, We’ve voted to reduce the #XRPL Reserves,” confirmed network validator @aesthetes_art in an X post. “It’s now 10x cheaper to start operating on the XRPL.”

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Account Reserve has shifted to 1 XRP from 10 XRP, and creation fees for trust lines or objects is down to 0.2 XRP from 2 XRP.

Account activation on the XRP Ledger refers to the process by which an account becomes operational or usable on the network. A reserve is the minimum amount to be held in any XRP address for it to send funds.

Every XRP address starts as non-activated, meaning it can’t send or receive funds until activated. It is locked to prevent spam accounts by making it costly to create multiple accounts.

On the other hand, the base reserve requirement is the fee associated with owning an object on the ledger. An object refers to any data element that the ledger stores, including payment channels, escrows, offers, or transactional information.

A drop in fees comes as account creation activity spiked on XRPL in the past days, with over 30,000 accounts created earlier on Monday (compared to usually under 2,000 in the previous weeks), network data show.

Several fundamental and regulatory developments have pushed XRP prices over 400% in the past 30 days, becoming the third-largest token by market capitalization on Sunday and zooming to price levels not seen since early 2018.

Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM,
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