Some parts of the cryptocurrency community on Twitter have been taking the Stellar Development Foundation (SDF) to the cleaner for burning more than 50% of the total supply of its token, XLM, and also putting a stop to its usual giveaways and airdrops programs owing to their “diminishing effects”.
This time around Jed McCaleb, the co-creator of Stellar who also co-founded Ripple Lab, and holds some XRP, has responded to the ongoing outrage after seeing Ripple’s Chief Technical Officer (CTO) David Schwartz teasing one of his follower with the much-condemned action of SDF.
When the CTO was talked down for posting a video of himself in a plane after the Swell Conference in Singapore, David said they made so much fun making a video after the SwellbyRipple ended.
“We had so much fun making this video! #SwellbyRipple is over for now. I’m off to Tokyo.”
A Twitter user, who was displeased with the price of XRP token responded, saying “No Fun here at 25 cents”. By 25 cents, the user was talking about the present price of XRP.
In response, Ripple CTO said: “Too bad XRP is decentralized or someone could just burn half the supply and raise the price to 29 cents.”
David Schwartz’ satirical statement was fashioned to attack the recent action of the Stellar Foundation. On seeing that, McCaleb replied, claiming Ripple Lab can also burn some percentage of its present XRP in supply.
“Wtf are you talking about. Ripple labs can burn half the XRP supply,” McCaleb replied.
Responding to McCaleb, the Ripple CTO accepted that XRP can only be burnt when the actions of the firm is not working. Rather than burn XRP, Ripple is investing in ideas with the possibility of expanding the XRP ecosystem and bring more adoption to the cryptocurrency.
“Thanks! I’ll keep that in mind if we ever find that nothing we’re doing is working.”
Wtf are you talking about. Ripple labs can burn half the XRP supply.
— Jed McCaleb (@JedMcCaleb) November 9, 2019
Although some social commentators do not believe XRP can be burnt, Ripple’s David Schwartz said it’s possible by sending XRP to an account whose public key hash has insufficient entropy to have a corresponding private key possible for anyone to find. Another means of burning XRP is to pay it as a fee.
David’s usage of body language to denigrate the Stellar Development Foundation reflected the common saying that denigrating one’s competitor may have unanticipated consequences.
Like David Schwartz, other key personalities in the cryptocurrency space drifted to Twitter to condemn Stellar Foundation for burning some the XLM in circulation.
Litecoin’s Charlie Lee also did the same some days back. The co-creator of Litecoin said Stellar Foundation could have done better by sharing the burnt tokens within the XLM community.
He said SDF only enriched its holding by burning just Billion of its 17 Billion XLMs. Charlie Lee said the action made SDF increase their percentage of total coins from 16% (17/105) to 24% (12/50) without debriefing the XLM community.
Charlie said: “50B XLMs burned were supposed to be distributed to the community. Stellar Development Foundation only burned 5B of their own 17B XLMs. This means SDF increased their percent of total coins from 16% (17/105) to 24% (12/50). And they did this without any community discussions.”