The XRP Ledger's Token Supply Is Permanently Capped at 100 Billion Tokens

Recently, speculation has emerged that Ripple could generate additional XRP tokens beyond the original 100 billion. These claims have been thoroughly addressed by an XRP Ledger validator, Vet.

Claims that Ripple (XRP) can generate additional XRP tokens beyond the original 100 billion have been circulating recently. These speculations stem from comments made by Bitcoin maximalist Pierre Rochard, who suggested that Ripple could alter the ledger's software to remove the supply cap. An XRP Ledger validator known as Vet has addressed these claims, asserting that Ripple cannot create more tokens as the total supply is permanently fixed.

Vet, a decentralized unique node list (dUNL) validator on the XRPL, clarified in a post on X that the token supply is capped at 100 billion tokens, a limit that was set when the ledger was launched in 2012. The entire token supply was pre-mined and is now permanently embedded in the ledger's code, ensuring a fixed total supply. The initial 100 billion tokens were stored in the Genesis account, which is publicly documented for complete visibility.

This fixed supply of tokens is hardcoded into the ledger's infrastructure, ensuring immutability. The ledger's cryptographic keys are accessible to the public, allowing anyone to verify the token supply in real-time. The XRPL's design incorporates multiple security features that collectively prevent the creation of new tokens under any circumstances, guaranteeing the integrity of the asset's supply.

Features Preventing the Creation of More TokensThe XRPL's invariant checker serves as a robust safeguard against the unauthorized creation of new tokens. This built-in security feature continuously monitors all network transactions to ensure that the token supply remains unchanged. Any attempt to generate new tokens would be instantly detected and blocked, maintaining the system's integrity.

Unlike Bitcoin, which has experienced accidental inflation due to a bug in the past, the XRPL has never encountered such an issue. Vet highlighted the 2010 Bitcoin bug that accidentally created 184 billion BTC tokens as an example of how such problems can arise in other blockchains. The XRPL, however, maintains its integrity by preventing any such inflation from occurring.

Furthermore, the asset is designed to be deflationary, not inflationary. Each time a transaction is conducted on the ledger, a small portion of the asset is burned as a fee, reducing the circulating supply over time. This mechanism ensures that the total number of tokens in supply continues to decrease, reinforcing the idea that the supply cannot be expanded beyond the original 100 billion.

Rochard's Claims and Ripple's ResponseRochard's comments, made on January 26, 2025, suggested that Ripple could alter the ledger's software and remove the supply cap or change the escrow locks, potentially allowing the creation of trillions of additional tokens. He also argued that Ripple had misled the public about the ledger's decentralization, asserting that Ripple and its affiliates control the network.

Ripple's Chief Technology Officer (CTO), David Schwartz, countered these claims, explaining that forking a blockchain does not automatically lead to widespread adoption of the forked version. While it is possible to fork a blockchain and alter its rules, this does not change the functionality or consensus of the original network. Schwartz emphasized that similar to Bitcoin, even if someone were to fork the ledger and modify the supply rules, it would not change the behavior of the original ledger network.

The claims that Ripple can legally issue more tokens beyond 100 billion appear to be unfounded, as the ledger's design ensures a fixed supply and the network's built-in security features collectively prevent any attempts to generate additional tokens. The scarcity of the asset is not an illusion but a fundamental characteristic of the system. As Vet and Schwartz have pointed out, the integrity of the ledger is maintained by its transparent, decentralized nature, rendering it less susceptible to the same risks that have affected other blockchains in the past.