Ripple CTO Emeritus Defends XRP Ledger's Low Fees Over Revenue Focus

Ripple CTO Emeritus David Schwartz has defended the low transaction fees on the XRP Ledger, emphasizing their role in fostering adoption rather than revenue generation. The discussion stemmed from an X user's query about the network's near-zero fees, which appear minimal compared to other Layer 1 blockchains when evaluated by fee revenue metrics.

The X user highlighted that the XRP Ledger's fees are burned rather than paid to validators, effectively reducing the supply of XRP. Since its launch, 14,403,762 XRP (0.014% of the total supply) has been burned, though the low burn rate reflects the network's low transaction fees. The user suggested increasing fees to boost the burn volume, but Schwartz rejected the idea, arguing that fee revenue is a poor metric for assessing blockchain efficiency.

Schwartz, an original architect of the XRP Ledger, criticized the focus on fee revenue, stating it measures the 'friction' a blockchain fails to remove. He emphasized the importance of low fees for users who pay them, rather than those who collect them. The X user had questioned whether higher fees could position the XRP Ledger more favorably in the market, but Schwartz maintained that low-cost, fast settlement is critical for payments and tokenization adoption.