Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 140

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 140
---
 process is critical to maintain the integrity and security of the ledger.

Once the code is developed
and tested, it is proposed as an “amendment” to the XRP Ledger. The amendment process is a governance mechanism that allows
validators to vote on whether to adopt the proposed changes. Validators on the network signal their approval or disapproval of the amendment
by updating their validator configuration. For the amendment to be activated, it must receive approval from at least 80% of the validators
on the network for two weeks continuously. If the amendment meets the required threshold, it is automatically activated on the XRP
Ledger, and the new functionality or modification becomes part of the ledger’s protocol.

Once activated, the changes
are deployed across the XRP Ledger. All nodes running the XRP Ledger software must update to the latest version to remain compatible
with the network. Even after deployment, the change is monitored to ensure it behaves as expected in the live environment. If any issues
arise, the community may need to address them through additional updates or modifications.

After the change is implemented,
the relevant documentation (such as the XRP Ledger technical documentation, API references, etc.) is updated to reflect the new features
or modifications. The community is informed of the successful implementation through official channels, including developer blogs, forums,
and updates to the GitHub repository.

Forms of Attack Against the XRP Ledger

All networked systems are
vulnerable to various kinds of attacks. As with any computer network, the XRP Ledger contains certain vulnerabilities. The XRP Ledger
relies on a network of validator nodes that agree on the order and validity of transactions. These nodes form the backbone of the consensus
process. Each validator node maintains a Unique Node List, which is a list of other validators it trusts. For a malicious actor to take
over, they would need to control a significant portion of the validators on the majority of these UNLs. To successfully alter the ledger,
the malicious actor would likely need to control more than 80% of the validator nodes or the voting power on the most widely used UNLs.

If the malicious actor cannot
control the validator nodes directly, they might attempt to compromise the validators that are already trusted by the network (i.e.,
those on the commonly used UNLs). This could involve hacking, bribery, deception or coercion.

A malicious actor could also
conduct an “eclipse attack.” In an eclipse attack, a malicious actor could isolate parts of the network so that the malicious