Ripple Misleads Cryptocommunity about Emission of XRP
Ripple’s escrow system reporting has several discrepancies with the blockchain data, according to Coin Metrics.
The analysts of Coin Metrics have found discrepancies between Ripple quarterly reports and the blockchain data. The volume of issued XRP appears to be understated by 200 million coins, which is $84 million. The experts noted that the distribution of the altcoins is implemented differently than announced by the development team.
For example, the “escrow queue” is organized not the way it was stated to be, leading to a faster future release of escrowed funds compared to the announced schedule. As for now, according to the blockchain data, the developers distribute $1 billion monthly.
“While it may make sense to aggregate leftover funds in this way, this modified scheme has in effect accelerated the release schedule of XRP,” Coin Metrics stated.
The analysts have run an experiment to demonstrate what the results of the fast XRP emission would be. Earlier, Ripple published an example of how the distribution of the XRP escrowed would look like, using the announced escrow queue mechanism. The experts reproduced this curve, in blue, and superimposed what would happen using the actual escrow queue mechanism in red.
Under the assumption used in the original article that 50 percent of funds would be used per month, the difference between announced and actual queuing would accelerate the distribution timespan by more than 21 years.
Earlier, analysts said that the rate of Ripple could surge due to the new partnerships.