$XRP Escrow: How Ripple's Predictable Supply Schedule Works
XRP's escrow system is a time-based smart contract on the XRP Ledger that locks tokens in code-enforced contracts, releasing up to 1 billion XRP monthly.
The system was designed by Ripple to remove discretion from its supply schedule and prevent market disruption. In December 2017, Ripple placed 55 billion XRP into escrow contracts, locking away more than half of the total 100 billion XRP supply.
Each month, 1 billion XRP is released on the first day, with Ripple typically relocking between 700 million and 900 million of the unlocked tokens. This means that only a small portion of the monthly release actually enters circulation, resulting in a net increase of tens of millions of dollars per quarter.
According to exchange flow data, around 700 million XRP was relocked within the first week of August 2026, with Ripple's CTO David Schwartz stating that this is typical of the company's monthly re-lock amounts.