XRP Holders Can't Stake, But Lending Vote Could Bring New Rewards

XRP holders cannot stake their coins due to the XRP Ledger's unique operating model. Unlike proof-of-stake networks, such as Ethereum, which reward validators with newly created coins, the XRP Ledger does not compensate its validators, eliminating the possibility of traditional staking.

RippleX, the development arm of Ripple, has proposed a vote on the LendingProtocolV1_1 amendment, which would introduce native lending functionality to the XRP Ledger. This new feature would allow for closed-ended vaults, enabling depositors to pool their assets and earn interest on loans. However, lending and staking are distinct activities, and native lending carries inherent risks, including the possibility of borrower default.

Until the proposed vote passes, XRP holders can earn returns through external platforms, such as Doppler Finance, which has attracted over $130 million in deposits. However, these options introduce risks related to counterparty issues, smart contracts, and network bridges. The LendingProtocolV1_1 vote requires more than 80% validator support for two consecutive weeks, plus the approval of two related amendments, before native lending can go live.