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For developers working on the XRPL I wanted to share an interesting project that started some months ago running on the ethereum blockchain and that one can figure it could be a vary valuable concept to transpose to the XRP ledger. The project’s name is vether (https://vetherasset.org/) “Vether is designed to be a store-of-value with properties of strict scarcity, unforgeable costliness and a fixed emission schedule. Vether mimics characteristics of Bitcoin, where miners compete to expend capital to acquire newly-minted coins and chase ever-decreasing margins. Instead of expending capital, Vether participants compete to purchase it by destroying capital on-chain. As a result, all units of Vether are acquired at-cost and by anyone. This mechanism is called Proof-of-Value.” There is a daily emission of vether (currently at only 2080 coins) that participants acquire them by burning ethereum (so deflating the circulating ethereum in existence). Daily burn acquisition is fair because its emission of value is pooled out of the number of participants for that day (e.g. if you burn 1 eth, and you are the single participant, you receive all its 2080 vether for that day; however if 10 participants with 1 eth each enter (burn them), you receive 10% of that pool [i.e. 208 vether]). A day is 23hours and 30min and halving occurs every 244 days. The first halving is expected for 5 January 2021. The “secret” to acquire vether is continuously daily burning of 1 to 2eth, because the protocol decreases proportionally with potential vether if one decides to burn 5 to 10 eth in one go. In other words, to obtain vether’s daily emission, burning 5 eth in one go is not the same as burning 5x one single ethereum. What if something along the lines could be developed into the XRPledger? So (1) burn XRP to mint this daily coin, but with another add-on (2) part of the proceedings for the “burning” instead of being burnt are sent to an escrow to fund XRP validators? So something like 80% of XRP directly burnt and 20% to pay XRP validators. After some days and weeks of daily emission of this new “burnt”-derived XRP (Let us call it bXRP for now), participants either wait for daily emission of burning (to acquire bXRP) or decide to trade (buy) the existing (circulating) ones out of the XRP DEX (bXRP/XRP). In other words, participants that already acquired burnt (daily) XRP from previous days can trade them (sell) for XRP. The emission in vether is scheduled to run for 10 years. What advantages would this new “burnt”-derived XRP be good for? First, bXRP could be a store of value coin (because it is in low and with fixed supply; maybe 1 million coins, 21 million coins?) minted at cost by burning XRP. Second, deflating further the supply of circulating XRP because it is needed to acquire bXRP. Ok long-term potencial of bXRP, into defi projects. The above example of vether is to sub-serve a new upcoming Defi project called Vader. Vader Pools (the new Defi) 1 Vether Burned = 1 Vader (you need to then burn vether to obtain Vader; so one burns initially ethereum to obtain vether, and then vether supply is burnt to obtain Vader) “VADER is a new form of liquidity protocol that seeks to be self-serving. It uses its own liquidity and awareness of asset purchasing power to support virtual assets, as well as lending and derivatives. It has a fair and transparent liquidity incentive strategy to maximise the depth of liquidity pools and the creation of virtual assets. It uses a liquidity-sensitive fee to ensure safe and sustainable creation of debt.” In many ways, such a proposal would be similar to the current Flare network, for those current familiar with the process (but with a few [burning] differences: a) XRP collateral served to obtain FXRP to acquire spark. b) Ethereum burnt to obtain vether, and vether burnt to acquire Vader. I think of such a minted/burnt at cost XRP-derived coin could (1) enhance the decentralization of the XRP ledger (stimulation new/ongoing XRP validators by funding), (2) provide interoperability with other XRP networks (like Flare networks; e.g. directly trading bXRP with spark or burn bXRP to obtain spark) [maybe have some people from Flare looking into this forum post?]), (3) reduce the supply of XRP further, (4) in the process increasing XRP liquidity with this burnt-at-cost model to obtain bXRP which is traded in the XRP DEX (and other exchanges) and (5) in the process create a real store of value with much lower supply and much better initial distribution model of a token than XRP ever had since its inception. For developers operating the XRP ledger, researching and looking out for potential positive projects, maybe such potential is worth brainstorming about? Vether’s white paper (3 pages long and reads well; highly advisable to read): https://vetherasset.org/whitepaper Vader’s white paper is currently hidden; this is because it was recently carbon copied by another project (the Spartan Project) that recently launched in the binance chain. Since then the white paper draft is offline (but maybe you can get ideas of Vader from the copied Spartan protocol https://medium.com/spartanprotocol/announcing-the-spartan-protocol-e15af93a8a8f) Cheers.