Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 139

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 139
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 exchange for Shares of the Trust, and the Trust, through the XRP Custodians, will deliver
XRP to Authorized Participants when those Authorized Participants redeem Shares.

Limits on XRP Supply

Unlike other digital assets
such as bitcoin or ether, XRP was not mined gradually over time. Instead, all 100 billion XRP tokens were created at the time of
the XRP Ledger’s launch in 2012. This means that every XRP token that exists today was generated from the outset, without the need
for a mining process. Of the 100 billion XRP generated by the XRP Ledger’s code, the founders of Ripple Labs retained 20 billion
XRP and the rest, nearly 80 billion XRP, was provided to Ripple Labs.

In 2017, to address concerns
about the large portion of XRP held by Ripple Labs, the company introduced an escrow mechanism to lock up a significant portion of its
XRP holdings. Under this mechanism, Ripple Labs placed 55 billion XRP (55% of the total supply) into a series of time-locked escrow
accounts. The escrow releases 1 billion XRP per month over 55 months. This process adds a level of predictability and transparency
about how much XRP can enter the market each month. If Ripple Labs does not use all of the 1 billion XRP released in a given month,
the remaining amount is placed back into escrow for future release. The purpose of this escrow system is to reassure the market that
Ripple Labs will not release too much XRP at once, which could potentially disrupt XRP’s price or market dynamics.

Modifications to the XRP Ledger Protocol

Modifications to the XRP Ledger
protocol involves a structured process. The first step is identifying a need or improvement that could benefit the XRP Ledger. This might
be related to performance, security, new features or other enhancements. The proposer drafts a formal proposal outlining the suggested
change. This proposal typically includes technical details, rationale, potential benefits and any drawbacks or risks.

The proposal is shared with
the XRP Ledger community, typically through forums such as the XRP Ledger GitHub repository or community discussion platforms. This allows
for initial feedback, questions, and suggestions from developers, validators and other stakeholders. During this phase, the proposer
may refine the proposal based on community input. Open dialogue is crucial to ensure the proposal addresses the community’s needs
and concerns.

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