Evernode Proposes Hooks and Codii Token to Bring Smart Contract Execution to XRPL

In a recent discussion regarding the future of programmability on XRP Ledger (XRPL), Evernode co-founder Scott Chamberlain has proposed a new approach involving Hooks and a new token, Codii, to enhance transaction functionality.

Scott Chamberlain, co-founder of Evernode, has put forth a proposal for enhancing XRP Ledger (XRPL) transaction functionality with the addition of Hooks and a new token called Codii. The aim is to introduce smart contract execution on XRPL while keeping user costs in check.

“I have a proposal for how to bring programmability to the XRPL. It is selfishly structured to allow EvernodeXRPL to exist on mainnet,” he stated.

“The Two Elements, Hooks and Codii”

Chamberlain’s proposal introduces two key elements. First, Hooks — a flexible, low-cost system proven to support decentralized applications, such as Evernode. The system automates tasks like registration, reputation scoring, and governance for network hosts, offering a seamless solution for transaction execution.

Evernode has four “chained” Hooks. The Heartbeat Hook holds all the EVR not in circulation and distributes it to Hosts rewards according to the rewards logic. The second Hook is the Network Registry. The third Hook manages the Reputation system. And the final Hook is the Governance Hook. It contains the rules by which holders of registration NFTs can vote on changes to the Hook.

Second, Codii — a native token minted from locked XRP and burned for Hook-related fees, would reduce the financial strain on users compared to burning XRP directly for smart contract triggers.

“To accommodate Hooks, mainnet should consider a new native token with similar tokenomics. Let’s call them Codii,” he wrote.

“A new native function would allow users to lock up XRP to mint Codii. The rate would be set initially, but adjustable via vote of validators. This would create a truly native defi use-case for XRP – XRP would come alive and become an earning asset – and ensure all users benefit from the addition of programmability to the network.”

Ripple CTO Skeptical

But Ripple CTO David Schwartz expressed skepticism about the need for such complexity. According to Schwartz, simply burning XRP for all transaction fees, as done currently, could streamline operations. He questioned the advantages of introducing Codii, pointing out that it adds burdens like managing two tokens, which could lead to dilution losses for XRP holders.

Chamberlain Defends The Proposal

Chamberlain defended the proposal, arguing that burning XRP for programmability would make smart contracts too expensive if XRP appreciates. He highlighted that Codii would offer a self-sustaining system, where XRP holders could effectively cover Hook fees through inflationary balance adjustments.

“Our hooks would be too expensive if hosts burned XRP to trigger them. Especially if XRP appreciates,” he commented.

However, Schwartz maintained that any system imposing costs on users through token inflation risks complicating fee management without significant benefits. It was also outlined that burning XRP as the sole method for transaction funding keeps the system straightforward, ensuring its accessibility as the value of XRP changes.