TLDR
- A Chainlink advocate challenged Ripple CTO David Schwartz on XRP’s value proposition and economic model.
- Fishy Catfish argued that XRP lacks sustainable revenue mechanisms and depends primarily on speculation.
- Ripple CTO David Schwartz defended the XRP Ledger’s fee-free validator model, arguing that it is beneficial for users.
- The critic called XRP a bank-themed meme coin driven by confused retail investors.
- Data shows that Ethereum hosts over 84% of RLUSD stablecoin while XRPL holds only 16%.
A Chainlink advocate challenged Ripple CTO David Schwartz on XRP’s fundamentals and value proposition. The debate centered on blockchain economics and token sustainability models. Fishy Catfish argued that XRP lacks proper revenue mechanisms for long-term growth.
Ripple CTO Defends XRPL’s Fee-Free Model
The discussion started when Ripple CTO David Schwartz explained the XRP Ledger’s validator payment structure. He told Scott Melker that avoiding validator fees removes intermediaries from the system. This design allows users to maintain control over their finances independently.
>So if you're buying a token as a speculative asset, is it a good or bad thing that much of the theory of its present value is built on something that's converging to zero versus something that, while small today, is stable and growing?
To be specific, XRP has nothing "stable… pic.twitter.com/eu7NFVzP7q
— Fishy Catfish (@CatfishFishy) November 1, 2025
Fishy Catfish countered this argument with a different economic perspective. He believes blockchain networks need small fees that return value to token holders. Such mechanisms create sustainable ecosystems rather than relying solely on speculation.
Ripple CTO David Schwartz suggested that cost-efficient blockchains would eventually dominate the market. He argued that long-term success depends on low operational costs for users. However, Catfish dismissed this view as incomplete and economically flawed.
XRP Lacks Real Utility Claims Chainlink Proponent
Catfish criticized XRP for having unstable growth metrics and limited developer engagement. Wallet count data shows an increase this year, despite his claims. He pointed to weak stablecoin adoption as evidence of poor network traction.
The critic highlighted RLUSD stablecoin distribution as proof of XRPL’s limited appeal. Data from RWA.xyz indicates a total circulation of $972.7 million in RLUSD. Ethereum hosts $819.7 million while XRPL holds only $153 million of the stablecoin.
Catfish then defined what XRP is not according to his analysis. He stated that XRP is not a genuine utility token for banking innovation. Instead, he called it a bank-themed meme coin driven by confused retail investors.
Many XRP investors believe that banks will use the token for direct payments. Ripple has already clarified to regulators that this is not the case. Catfish argued that investors often mistake Ripple’s business partnerships for the utility of the XRP token.
The critic also blamed Ripple for encouraging confusion among retail investors. He claimed XRP holders often lack understanding of DeFi tools and blockchain metrics. These investors rely heavily on influencer content and promotional marketing for investment decisions.
David Schwartz Questions Fee-Based Sustainability
Ripple CTO David Schwartz challenged the fee collection model that Catfish proposed. He asked who benefits when small fees decline over time. This question highlighted concerns about long-term sustainability of fee-based systems.
Catfish responded that transaction volume compensates for declining individual fees. He explained that millions of transactions generate meaningful revenue for token holders. Shrinking margins affect pricing but not the fundamental logic behind fee structures.
Ripple CTO David Schwartz noted that most cryptocurrencies are speculative, based on this reasoning. Most tokens depend on expectations of future demand rather than current utility. Catfish agreed but separated the market into meme coins and revenue-generating tokens.
He listed Ethereum, Solana, Chainlink, and Aave as examples of proper tokenomics. These projects channel protocol revenue directly back to their token holders. Ripple sells XRP to fund company operations and acquisitions instead.
Ripple CTO David Schwartz argued that most assets offer similar core functions. This makes separating them by utility alone quite difficult. Catfish countered that blockchains differ widely in design, use cases, and adoption rates.
The critic emphasized that few projects align token value with real economic growth. He believes XRP fails to meet this standard completely. Building sustainable tokenomics requires more than just issuing a cryptocurrency.
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