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Picard78

XRP Supply limited by Owner Reserve

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Hello XRP Community,

This is my first post.  I was going over the XRP API documentation and discovered the Owner Reserve which is currently 5 XRP.  Isn't this feature of XRP one reason that will limit XRP Supply once mass adoption occurs?  Suppose I'm a Broker or Market Maker and I am required to have 5 XRP Owner Reserve for each Offer (limit BID and limit ASK that I place on the XRP Ledger which is not immediately consumed).   Suppose I want the capacity to have up to 1 Million limit Offers in the XRP Ledger.  Hence, I will always maintain a 5 million XRP reserve so my Offers never become flagged us Unfunded.

As the Price of XRP increases the Base Reserve and Owner Reserve will be reduced, but the Owner Reserve is an important consideration to hold and accumulate XRP if I plan to be a significant future Broker or Market Maker on the XRP ledger.

Am I understanding Owner Reserve correctly and how it encourages holding some XRP to be part of the XRP ecosystem?

Thank you

 

 

 

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7 hours ago, Picard78 said:

Am I understanding Owner Reserve correctly and how it encourages holding some XRP to be part of the XRP ecosystem?

No sorry you appear to have that incorrect. 

The owner Reserve is per Account.  Not per offer.  

So every XRP wallet address secured by a key is inactive until someone sends at least the owner reserve into that wallet (actually an Account).  

After that the wallet can send XRP out so long as it leaves at least the Reserve amount (20 XRP) in as the wallet Reserve.

The reason it exists is to stop a malicious actor from spamming the XRPLedger with Account Create transactions.  If there was no Reserve amount they could flood the network with those transactions.   

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Tinyaccount, what you are referring to is the Base Reserve.  There are two reserves; Account Base Reserve (20 XRP) and Object Owner Reserve (5 XRP).

https://xrpl.org/reserves.html

That being said, upon further reading in this forum, it has come to my attention that the XRPL Distributed Exchange isn't getting much focus.  If that is the case my Owner Reserve argument for Holding XRP becomes a moot point.

Quote

Ripple at least doesn't seem interested in promoting the XRPL distributed exchange. I don't think it's clear why.

There's very little liquidity on there these days. It's been hung out to dry.

 

Edited by Picard78

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4 minutes ago, Picard78 said:

Tinyaccount, what you are referring is the Base Reserve.

Ah, sorry, you are correct.  My bad.  I must admit I skimmed your post and was also unaware of the owner reserve on offers.  Thanks for correcting me.

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3 hours ago, yxxyun said:

lack high quality gateway to issue asset, lack wallet support. 

With Central Banks opening up to Ripple and digital assets, perhaps they will be the major driving force behind usage on the XRPL? That, and new wallet & exchange services building on the XRPL.

I know CoinField and XRPLabs are working on some big projects built on the ledger, but why now? Why has it taken this long? Perhaps regulations? Open banking initiatives? A multi-pronged approach to initially liquidity in conjuction with micropayment initiatives and the gaming/music industries to converge all around the same time?

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Let me get this straight. Every time someone creates a new account the reserve is 20 XRP, but when that account wants to setup an offer, trust line, payment channels, etc., an additional 5 XRP is needed in the reserve for a total of 25 XRP? Let's say you want to setup a payment channel and trust line, do you need 30 XRP for two different objects? 

 

Edit: 

"Without the MultiSignReserve amendment, a single SignerList counts as 3 to 10 objects for purposes of the owner reserve, depending on how many members it has. With the MultiSignReserve amendment enabled, a single SignerList counts as 1 object for purposes of the owner reserve, regardless of the number of members it has. See also: SignerLists and Reserves."

Next page

"With the MultiSignReserve amendment enabled, the SignerList counts as one object, regardless of how many members it has. As a result, the owner reserve associated with a SignerList is 5 XRP, regardless of how many members it has" 

Edited by ObeyTheWafflehouse
Found my answer

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3 minutes ago, ObeyTheWafflehouse said:

Let me get this straight. Every time someone creates a new account the reserve is 20 XRP, but when that account wants to setup an offer, trust line, payment channels, etc., an additional 5 XRP is needed in the reserve for a total of 25 XRP? Let's say you want to setup a payment channel and trust line, do you need 30 XRP for two different objects? 

yes, add one trust line  +5, place one offer + 5, if you remove one trust line or cancel one offer or offer full matched  the reserve released. 

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