TLDR
- Charles Hoskinson urged Ripple to dedicate 20% to 30% of its revenue to XRP buybacks.
- He said Ripple continues selling XRP while retaining profits within the company.
- Hoskinson argued that XRP holders do not gain ownership of assets acquired through XRP sales.
- He compared Ripple’s structure to Block.One and its handling of EOS funds.
- Ripple confirmed it has purchased XRP on secondary markets since 2020.
Cardano founder Charles Hoskinson urged Ripple to connect its revenue directly to XRP through structured buybacks. He shared his views during an interview on Paul Barron’s podcast. He said Ripple should allocate 20% to 30% of earnings to purchase XRP from the market.
Ripple and XRP Strategy Faces Fresh Criticism
Hoskinson addressed a viewer question about Ripple’s plans if the Clarity Act becomes law. He said he does not expect Ripple to introduce a formal XRP buyback program. Instead, he stated that Ripple will likely continue selling XRP and retaining company profits.
He argued that Ripple earns billions from XRP sales and uses those funds to acquire assets. However, he said XRP holders do not gain ownership rights in those assets. He claimed Ripple has followed this structure for more than ten years.
Hoskinson said, “Ripple will keep selling XRP and then buy hard assets inside the company.” He added that token holders receive no share of those corporate gains. He maintained that Ripple has no legal duty to distribute profits to XRP holders.
Barron responded that Ripple reinvests capital into the XRP Ledger ecosystem. He said this reinvestment supports product development and network growth. Hoskinson replied that ecosystem spending does not replace direct token buybacks.
Ripple’s XRP Purchases and Supply Debate
Hoskinson pointed to projects like Hyperliquid as examples of buyback-driven token support. He said a structured buyback could improve XRP’s market appeal. He stated that dedicating 20% to 30% of earnings would strengthen the relationship between Ripple and XRP.
He compared Ripple’s model to Block.One and EOS. He said Block.One raised $4 billion but later stated it had no fiduciary duty to EOS holders. He argued that Ripple operates under a similar structure.
Ripple has confirmed that it has purchased XRP on secondary markets since 2020. The company disclosed these transactions in its XRP Markets Reports. It said the purchases support On-Demand Liquidity expansion and maintain market liquidity.
In Q1 2022, Ripple purchased $1.081 billion in XRP while reporting net sales of $273.27 million. In Q2 2022, purchases reached $1.717 billion and ODL-related sales totaled $2.126 billion. The company reported net sales of $408.9 million for that quarter.
By Q1 2023, Ripple reported $2.569 billion in XRP purchases. It recorded net sales of $361.06 million during the same period. Ripple stated that these transactions ensure supply for its payment operations rather than serve as traditional buybacks.
Hoskinson also criticized Ripple’s original XRP allocation model. He said Ripple retained between 70% and 80% of the total XRP supply at launch. He argued that this allocation gave the company strong control over token distribution.
He said Ripple can sell XRP, generate cash, and expand its business. However, he stated that holders only retain access to the token and network. He compared this structure to Tether, where the company retains most economic benefits.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
