Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 133

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 133
---
. They confirm transactions approximately every 3-5 seconds, making the ledger both fast and reliable. Validators vote on
proposed changes to the XRP Ledger protocol through the amendment process. If 80% or more of the validators agree on a proposed amendment
for two weeks continuously, the change is adopted and becomes part of the network’s code. Validators contribute to the overall
health and stability of the network. By participating in the consensus process, they help secure the ledger against attacks and ensure
that it remains trustworthy.

<div align='center'>61</div>

Ripple Labs currently runs
only 1 of the 35 validators in the default Trusted Nodes List. Some universities and research institutions operate validators as part
of their research into blockchain technology and to support the decentralization of the network. Independent companies, developers, and
other entities that support the XRP Ledger’s ecosystem also run validators. These could include blockchain-focused companies or
other technology firms. Enthusiastic community members and developers who are committed to the success and decentralization of the XRP
Ledger may also operate validators.

Unlike some other blockchain
networks, validators on the XRP Ledger are not directly compensated for their participation in the consensus process. The XRP Ledger does
not have a block reward system like that of the Bitcoin network’s mining rewards or the XRP Ledger’s staking rewards. Since
the XRP Ledger is pre-mined and the total supply of XRP was created at the outset, there is no ongoing issuance of XRP to distribute as
rewards. While validators play a crucial role in the network, they do not receive the transaction fees that are burned as part of each
transaction. Instead, these fees are destroyed to reduce the overall supply of XRP, which indirectly benefits all XRP holders by increasing
the scarcity of the asset. Running a validator on the XRP Ledger is generally considered a voluntary contribution to the health of the
network. Participants run validators for reasons other than direct financial gain, such as supporting the network’s decentralization,
ensuring its security, or for reputational benefits within the XRP community. Institutions like banks, financial entities, or tech companies
might run validators because they use the XRP Ledger in their business operations. By running a validator, they can have more influence
over the reliability and stability of the network they rely on.

Investment and Speculative Sector

This sector includes the investment
and trading activities of both private and professional investors and speculators. Historically