Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 131

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 131
---
 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.

<div align='center'>60</div>

If the proposal is generally
well-received, the next step involves writing the necessary code to implement the change. This is often done by the proposer or a group
of developers with expertise in the XRP Ledger’s codebase. The new code is rigorously tested in various environments. This might
include test networks (such as the XRP Ledger Testnet) to ensure that the change does not introduce bugs or vulnerabilities and works
as intended under different scenarios. The code is then reviewed by other developers, especially those with a deep understanding of the
XRP Ledger. This peer review 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