A bit of mystery and A LOT of misinformation has been going around regarding Ripple’s escrow. This article will unravel any mystery surrounding Ripple’s escrow holdings.

What is an escrow?

Escrow is a feature of the XRP Ledger that allows you to send conditional XRP payments. These conditional payments, called escrows, set aside XRP and deliver it later when certain conditions are met. Conditions to successfully finish an escrow include time-based unlocks and crypto-conditions.

The XRP set aside in an escrow is locked up. No one can use or destroy the XRP until the escrow has been successfully finished.

Ripple’s initial escrow creation

In December 2017, Ripple created 55 escrows, 1 billion XRP each. Every month, one of these 1 billion escrows would expire, returning the 1 billion XRP to Ripple. Ripple could then use that XRP or return a certain amount to a new escrow.

Ripple’s escrow release history

This is a table showing the release of Ripple’s escrow every month and the amount returned to escrow. In 27 months, Ripple has released 27 billion XRP, of which, 21.6 billion went back into escrow. Ripple has re-escrowed exactly 800 million XRP every month, on average so far.

Date endingAmount Released (XRP)Amount Returned to escrowCumulative XRP in escrow
Jan 181,000,000,000054,000,000,000
Feb 181,000,000,000900,000,00053,900,000,000
Mar 181,000,000,000900,000,00053,800,000,000
Apr 181,000,000,000900,000,00053,700,000,000
May 181,000,000,000900,000,00053,600,000,000
Jun 181,000,000,000900,000,00053,500,000,000
Jul 181,000,000,000900,000,00053,400,000,000
Aug 181,000,000,000900,000,00053,300,000,000
Sep 181,000,000,000800,000,00053,100,000,000
Oct 181,000,000,000800,000,00052,900,000,000
Nov 181,000,000,000800,000,00052,700,000,000
Dec 181,000,000,000800,000,00052,500,000,000
Jan 191,000,000,000800,000,00052,300,000,000
Feb 191,000,000,000800,000,00052,100,000,000
Mar 191,000,000,000700,000,00051,800,000,000
Apr 191,000,000,000700,000,00051,500,000,000
May 191,000,000,000700,000,00051,200,000,000
Jun 191,000,000,000700,000,00050,900,000,000
Jul 191,000,000,000700,000,00050,600,000,000
Aug 191,000,000,000800,000,00050,400,000,000
Sep 191,000,000,000800,000,00050,200,000,000
Oct 191,000,000,000800,000,00050,000,000,000
Nov 191,000,000,000900,000,00049,900,000,000
Dec 191,000,000,0001,000,000,00049,900,000,000
Jan 201,000,000,000900,000,00049,800,000,000
Feb 201,000,000,000900,000,00049,700,000,000
Mar 201,000,000,000900,000,00049,600,000,000
27,000,000,00021,600,000,000

When Ripple first escrowed the 55 billion XRP, it used 11 different wallets, each holding 5 billion XRP in escrows. At the time of writing, 5 of the initial wallets have 0 XRP escrowed in them, while 6 new wallets have been created.

Escrow walletsAmount of XRP in escrow
r9NpyVfLfUG8hatuCCHKzosyDtKnBdsEN30
r9UUEXn3cx2seufBkDa8F86usfjWM6HiYp0
rB3WNZc45gxzW31zxfXdkx8HusAhoqscPn0
rDdXiA3M4mYTQ4cFpWkVXfc2UaAXCFWeCK0
rKDvgGUsNPZxsgmoemfrgXPS2Not4co2op0
rN8pqRwLYuuvY7pUHurybPC8P6rLqVsu6o4,000,000,000
rKwJaGmB5Hz24Qs2iyCaTdUuL1WsEXUWy54,000,000,000
rU9qmGM4Y6WWDhiNzkwVKBwwatcoE7YL1T5,000,000,000
rNASJdZjY9dToHnNURi3HAUku3duPwbtD15,000,000,000
rfWPPQBYqYmoFMdVnjzXCagJbz5uajSBXL5,000,000,000
rh2EsAe2xVE71ZBjx7oEL2zpD4zmSs3sY95,000,000,000
rhEwsCWDCVxDiKxGJAKM6VuXC8EFtJP5gQ5,000,000,000
rncKvRcdDq9hVJpdLdTcKoxsS3NSkXsvfM5,000,000,000
rp6aTJmW3nq1aKt3Jmuz4DPRxksT5PBjpH5,000,000,000
rsjFB8mPWqiZgPUaVh8XYqdfa59PE2d5LG5,000,000,000
rw2hzLZgiQ9q62KCuaTWuFHWfiX7JWg3wY1,000,000,000
rDqGA2GfveHypDguQ1KXrJzYymFZmKxEsF600,000,000
49,600,000,000

Besides spreading its escrow to different wallets, each holding a maximum of 5 billion XRP, Ripple also makes sure that every month, a maximum of 1 billion XRP is in escrow. This applies to any new escrows Ripple creates.

Currently, the last escrow ends in May 2024. Starting from April 2020, up until April 2024, in each month a total of 1 billion XRP in escrow will end. In May 2024, currently, there are 600 million XRP escrowed. Next month when Ripple creates new escrows, it will escrow 400 million XRP ending in the month of May 2024 and the rest for June 2024. This will go on for some time now.

You can view all the escrows on our escrow page.

Ripple’s XRP sales

Ripple has been very transparent as far as its sales are concerned. Every quarter it publishes a quarterly report that shows exactly how much XRP Ripple sold during that timeframe. As you can see in the graph below, Ripple’s sales (in USD) were the most from Q3 2018 to Q2 2019.

Image source: TheBlock

Toward the end of Q2 2019, Ripple announced that it would start using a different approach to XRP volume reporting and that it would take a more conservative approach to XRP sales. Indeed, in the last two quarters, Ripple’s sales appear to be significantly lower.

Conclusion

Whenever you see a news outlet claiming that Ripple is about to dump 1 billion XRP, you should know that that is never the case. Ripple has maintained a very conservative approach with maximum transparency.

As mentioned in the Q4 2019 report, Ripple continues to focus solely on its over-the-counter (OTC) sales with a few strategic partners, who are building XRP utility and liquidity in strategic regions including EMEA and Asia. 

Ripple is determined to get more RippleNet members on On-Demand Liquidity and XRP, and it is taking all the necessary steps to achieve that.

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Categories: Ripple

1 Comment

Pucksterpete (@pucksterpete) · March 2, 2020 at 5:28 pm

Great article Leonidas, and when those FUD articles start to come out each month about the escrow, I will direct them here to correct their ass! Keep up the great work…

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