The upcoming Automated Market Maker (AMM) feature on the XRP Ledger (XRPL) has sparked discussions and speculation within the crypto community. The feature, if implemented, could potentially boost the utility and demand for XRP. David Schwartz, the Chief Technology Officer of Ripple, recently urged XRPL validators to support the AMM feature after community consensus has been reached. However, despite this call for support, there has been ongoing voting within the community, with the majority expressing a “No” vote in relation to the initiative.
In response to the speculation and rumors around the potential impact of the AMM on XRP’s tokenomics, Ripple’s Lead Product Manager, Jasmine Cooper, dismissed the idea that the introduction of AMM would fundamentally change XRP’s tokenomics. This stance is also consistent with the opinions of other industry experts, such as crypto author Panos Mekras, who has emphasized the immutable nature of XRP’s tokenomics. Mekras stated that it would be technically impossible for XRP to become a stablecoin and that the coin will continue to function as the native coin of the XRPL, maintaining its decentralized and tradeable nature.
Despite the dismissal of rumors surrounding potential tokenomics changes, both Cooper and Mekras highlighted the potential for AMM to bring additional utility and demand for XRP. The introduction of AMM could elevate the need for XRP in facilitating transactions and as a utility token for gas and account reserves on the XRPL.
The importance of achieving community consensus and coordination among validators was also emphasized by David Schwartz, who suggested that, instead of voting individually, validators should align their votes with the consensus reached by the community.
As of the latest update, the validator consensus for the introduction of AMM on the XRPL has not yet reached the required level, with ongoing voting and a reported 40% consensus. Notably, Ripple and Bithomp are among the 14 validators who have voted “Yes” in support of the AMM feature, while 21% of validators are holding onto a “No” vote. This ongoing dialogue and democratic process within the community showcase the significance of collective decision-making in implementing important features like AMM.
Despite the ongoing discussions and voting process, XRP’s current market performance remains a separate factor. At the time of the report, XRP is trading at $0.605056, reflecting a 1.9% decline in the last 24 hours and a 9.9% decline in the last seven days. These market dynamics are independent of the ongoing discussions regarding the introduction of AMM on the XRPL.
The potential impact of the AMM feature, if implemented, remains a subject of speculation and anticipation within the XRP community. The product manager and experts in the field have made it clear that the feature, if implemented, is not expected to change the underlying tokenomics of XRP but could strengthen its utility and demand within the XRPL ecosystem.
In conclusion, the ongoing discussion and speculation surrounding the implementation of the AMM feature on the XRPL reflect the dynamic and collaborative nature of the crypto community. As the community continues to engage in dialogue and democratic decision-making, the potential for additional utility and demand for XRP remains a focal point of interest and anticipation for stakeholders within the ecosystem.