VanEck's Head of Digital Assets Research, Matthew Sigel, has raised questions about the financial benefits of XRP Ledger (XRPL) developments for XRP holders. In response, Ripple CTO David Schwartz clarified the XRPL's intended functions and the nature of XRP's value.
Sigel expressed his continued lack of understanding regarding the XRPL's specific functions, despite acknowledging the strong conviction of its proponents. This statement sparked a debate among XRP supporters who believe recent institutional advancements have made the XRPL's utility undeniable.
One XRP user, Lon Copper, suggested that Sigel's confusion might be performative, aimed at generating engagement rather than a genuine lack of understanding.
XRPL's Purpose: Payments and Assets, Not Passive Income
David Schwartz, Ripple's Chief Technology Officer, emphasized that the XRPL is designed primarily for facilitating payments and tokenizing assets, rather than serving as a platform for passive income generation for its holders.
Schwartz further explained that the network's fee structure is implemented to prevent spam and maintain network integrity. He argued that the value of XRP is intrinsically linked to its utility within the network, not from profits generated by the network itself.