TL;DR
- Ripple will release 1 billion XRP tokens on December 1, equivalent to 1.75% of the circulating supply and 2.61% of the tokens still locked.
- The release will be conducted in three transactions from accounts linked to escrows established in 2020, with a continuous flow of unlocks planned for the coming years.
- In 2024, XRP has increased in value by 162%, driven by demand and strategic sales under Ripple’s ODL model.
Ripple is preparing to release 1 billion XRP tokens on December 1 as part of its monthly routine of unlocking assets from an escrow system managed on the XRP Ledger.
This process, conducted on the first day of each month, will distribute approximately 1.75% of XRP’s current circulating supply, which stands at 56.99 billion tokens. Additionally, the release represents 2.61% of the remaining total locked, comprising 38.23 billion XRP still under Ripple’s control.
How Will the Unlock Be Conducted?
The December unlock will take place in three main transactions. Two of these, involving 200 million and 300 million XRP, will come from the account known as “Ripple (24),” while the third, consisting of 500 million tokens, will be managed from the account “Ripple (25).” These reserves were originally locked in 2020, and after their release, both accounts will have only one month of escrow remaining. However, other reserves under Ripple’s custody will ensure a continuous flow of unlocks over the coming years.
During November, Ripple unlocked the same amount of tokens, allocating 53% of them—equivalent to 530 million XRP—to new escrows scheduled to end in February 2028. The remaining assets, approximately 470 million XRP, were allocated to accounts designated for sales and commercial operations. This approach aligns with the On-Demand Liquidity (ODL) model used by the company, which allows the tokens to be sold directly at market price, mitigating the effects of large supply movements on the token’s price.
A Fruitful Year for Ripple and Its Economic Model
Despite concerns about the inflationary impact of these releases, XRP has shown remarkable performance in 2024, achieving a 162% increase in its price since January. Currently, the token is trading at $1.66, driven in part by sustained demand and Ripple’s commercial strategies, which include cumulative sales of over 3 billion XRP this year, valued at more than $5 billion
