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CraCra

XRP coins destroyed

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Newbie here..... invested in XRP in the last few months and have been monitoring this chat just as long. I been researching and looking for information on XRP coins destroyed.  I checked in this chat room but found nothing answering my questions (search skills need polishing). Anyhoo, was wondering if anyone knows some questions I have below. 

1. On average how many XRP coins will be destroyed over the course of a year. ( I know depends on usage...but if it is used say 5% of the currency out there)

2. What happens if all coins get destroyed?  (I know, investors who have it in cold wallets, so it won't go to zero) But what about those who need them and then the coins get scarce. I wonder if this is the reason why coins could be worth $1000 per coin someday (soon I hope).

3. Are there any possibilities that Ripple will add coins. 

I see over 5 million coins have already been destroyed per the link below. So XRP is being used quite a bit. So I wonder once XRP is live and kicking how many coinss will be destroyed and how it could impact the price of each coin. 

https://xrpcharts.ripple.com/#/

Thanks.... sorry to be a newb and asking out of the gate here. 

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1 hour ago, CraCra said:

over 5 million coins have

I think you might be mistaken.  I couldn't see in your link why you feel 5 million destroyed.  

I could be wrong but I think that's orders of magnitude bigger than the real figure.  

To answer the essence of your question though...  the fee will be adjusted as circumstances change but it is intended to be always very very low and it's purpose is as an anti transaction spam measure.  

Edit:   Forgot your other questions....   no more coins will be created

The supply won't run out.  The fee is tiny and can be adjusted.  

Edited by Tinyaccount
Reply 2 and 3

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2 hours ago, CraCra said:

2. What happens if all coins get destroyed?

This won't happen for ... hundreds?? of years.  The atomic unit of the XRP Ledger is actually not "1 xrp" - each XRP is divisible into one million atomic units.  So there's roughly:

100,000,000,000 XRP X 1,000,000,000 atomic units = 100 000 000 000 000 000 000    (100 Quintilian units)  

You'd need to subtract the destroyed units from this amount, so yes, approximately 5 million XRP have been destroyed so far.

To divide the units further, it would require an approved amendment to the code base.  https://ripple.com/build/amendments/

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53 minutes ago, Hodor said:

This won't happen for ... hundreds?? of years.  The atomic unit of the XRP Ledger is actually not "1 xrp" - each XRP is divisible into one million atomic units.  So there's roughly:

100,000,000,000 XRP X 1,000,000,000 atomic units = 100 000 000 000 000 000 000    (100 Quintilian units)  

You'd need to subtract the destroyed units from this amount, so yes, approximately 5 million XRP have been destroyed so far.

To divide the units further, it would require an approved amendment to the code base.  https://ripple.com/build/amendments/

Prediction: More XRPs will have been destroyed than Bitcoins mined by the time "Market Cap" of XRP exceeds Bitcoin.

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9 hours ago, Tinyaccount said:

I think you might be mistaken.  I couldn't see in your link why you feel 5 million destroyed.  

I could be wrong but I think that's orders of magnitude bigger than the real figure.  

You are wrong, about 5.5 million XRP were destroyed via fees until now. Which "real figure" did you assume to be correct?

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16 minutes ago, Sukrim said:

You are wrong.....

Well it certainly isn't the first time that's happened.....   :)

I just figured 5 million in fees must be wrong because of two things.....   Firstly I knew that the fee was only a tiny fraction of an XRP and secondly because we are not using XRP in the real use case yet.

So an amount of 5 million is a not-insignificant portion of a Billion....  and there is 'only' a hundred billion extant.

So it seemed to me that it was unlikely that we had already burnt half a percent of the first of the hundred billions without actually even going 'live'.  Maybe we have...   but I'm not yet convinced.   :)   (So that probably makes me wrong again...   :) )

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I am also a newbie, but it really looks like Tinyaccount is correct about the total number destroyed. If you watch that 'Total XRP' field it is going down over even just a single minute -- down by just a fraction of a single XRP.

I was discussing this aspect of XRP with my wife last night. We think that there are solutions to the problem of the eventual scarcity of XRP. Granted this probably won't be an issue for a long time, but, like with stocks, it may be beneficial for a single unit of XRP to remain at a low value. However, this is difficult to estimate due to a lack of knowledge of transaction fees in the future.

The most obvious solution for controlling the price and quantity of XRP is to refresh the supply to 100B with something akin to a stock split. Current owners will still have the same percentage ownership of the pool of XRP and the market cap would be the same after the split. This could be a fractional split and not limited to a 1:2 split.

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The blockchain is public, you can look up which transactions destroyed how many XRP/drops. The total number of XRP is also a header field and enforced by Consensus. It's not like this is a number up for debate, it is a mathematical fact.

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11 hours ago, Hodor said:

This won't happen for ... hundreds?? of years.  The atomic unit of the XRP Ledger is actually not "1 xrp" - each XRP is divisible into one million atomic units.  So there's roughly:

100,000,000,000 XRP X 1,000,000,000 atomic units = 100 000 000 000 000 000 000    (100 Quintilian units)  

You'd need to subtract the destroyed units from this amount, so yes, approximately 5 million XRP have been destroyed so far.

To divide the units further, it would require an approved amendment to the code base.  https://ripple.com/build/amendments/

Wow!! That's crazy!

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3 hours ago, AetherMass said:

I am also a newbie, but it really looks like Tinyaccount is correct about the total number destroyed. If you watch that 'Total XRP' field it is going down over even just a single minute -- down by just a fraction of a single XRP.

I was discussing this aspect of XRP with my wife last night. We think that there are solutions to the problem of the eventual scarcity of XRP. Granted this probably won't be an issue for a long time, but, like with stocks, it may be beneficial for a single unit of XRP to remain at a low value. However, this is difficult to estimate due to a lack of knowledge of transaction fees in the future.

The most obvious solution for controlling the price and quantity of XRP is to refresh the supply to 100B with something akin to a stock split. Current owners will still have the same percentage ownership of the pool of XRP and the market cap would be the same after the split. This could be a fractional split and not limited to a 1:2 split.

I may be wrong!! but as the value of XRP increases wont the destruction rate reduce, and to some degree is that not why a high value per XRP is good because transactions

will burn a smaller amount of XRP. 

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I had never read that before, it was well thought out and leaves Ripple open ended which is excellent, for there is always room for improvement and this new age blockchain explosion is always advancing... 

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12 minutes ago, Hodor said:

Yeah, the great thing about strong governance is that Ripple had a great plan for it from the beginning.  An amendment process if we need to lower the fees per wallet, e.g. :  https://ripple.com/build/amendments/

I had never read that before, it was well thought out and leaves Ripple open ended which is excellent, for there is always room for improvement and this new age blockchain explosion is always advancing... 

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9 minutes ago, rainbowhunter said:

I may be wrong!! but as the value of XRP increases wont the destruction rate reduce, and to some degree is that not why a high value per XRP is good because transactions

will burn a smaller amount of XRP. 

Transaction Cost

To protect the XRP Ledger from being disrupted by spam and denial-of-service attacks, each transaction must destroy a small amount of XRP. This transaction cost is designed to increase along with the load on the network, making it very expensive to deliberately or inadvertently overload the network.

Every transaction must specify how much XRP to destroy to pay the transaction cost.

Current Transaction Cost

The current minimum transaction cost required by the network for a standard transaction is 0.00001 XRP (10 drops). It sometimes increases due to higher than usual load.

You can also query rippled for the current transaction cost.

Special Transaction Costs

Some transactions have different transaction costs:

TransactionCost Before Load Scaling

Reference Transaction (Most transactions)10 drops

Key Reset Transaction0

Multi-signed Transaction10 drops × (1 + Number of Signatures Provided)

EscrowFinish Transaction with Fulfillment10 drops × (33 + (Fulfillment size in bytes ÷ 16))

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