XRPL Co-Founder Proposes Hooks and Codii Token to Enhance Transaction Functionality

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

A recent discussion about the future of XRP programmability has seen Evernode co-founder Scott Chamberlain propose a novel approach involving Hooks and a new token, Codii. The goal is to enhance transaction functionality on the XRP Ledger (XRPL) while keeping user costs manageable. This proposal aims to enable smart contract execution on the XRPL without overburdening users.

Chamberlain's proposal introduces two crucial elements. First, Hooks is a flexible and low-cost system that has been successfully used to support decentralized applications, such as Evernode. The system automates various tasks, including registration, reputation scoring, and governance for network hosts, providing a seamless solution for executing transactions on the XRPL.

Second, Codii is a native token that would be minted from locked XRP and burned to pay for Hook-related fees. This mechanism is designed to reduce the financial burden on users compared to burning XRP directly for smart contract triggers.

Chamberlain's proposal sparked a response from Ripple CTO David Schwartz, who questioned the need for such complexity. According to Schwartz, simply burning XRP for all transaction fees, as is currently done on the XRPL, would streamline operations and make the system more accessible. He expressed skepticism about the benefits of introducing Codii, highlighting that it adds burdens like managing two tokens and could lead to dilution losses for XRP holders.

"This seems way overcomplicated for no benefit. What advantage does this have over just burning XRP for all transaction fees?" asked Schwartz.

Chamberlain defended the proposal by 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.

"The XRP burn model for transactions is simple and works well at low XRP prices. But it becomes prohibitively expensive for smart contracts if XRP goes up in value. Codii offers a self-sustaining model where XRP holders get inflationary balance adjustments to cover Hook fees," explained Chamberlain.

Despite Chamberlain's rationale, 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.