Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 62

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 62
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 of engineers and developers who contribute significantly to the core codebase of the XRP Ledger. The XRP Ledger Foundation is also influential as it relates to the development and governance of the XRP Ledger. The XRP Ledger Foundation is an independent organization established to support the development and adoption of the XRP Ledger. While Ripple Labs remains a key contributor, the XRP Foundation aims to ensure that the ledger remains open and decentralized, promoting transparency and inclusivity in its governance and development. Being an open-source project, the XRP Ledger also has contributions from independent developers and other entities interested in its success. These community contributors can propose changes, submit pull requests, and report issues on the XRP Ledger’s GitHub repository.

Any of these parties can propose amendments to the XRP Ledger’s source code that, if accepted by validators and users, could alter the protocols and software of the XRP Ledger and the properties of XRP. These alterations occur through software upgrades and could potentially include changes to the irreversibility of transactions and limitations on the issuance of new XRP, which could undermine the appeal and market value of XRP. Alternatively, software upgrades and other changes to the protocols of the XRP Ledger could fail to work as intended or could introduce bugs, security risks, or otherwise adversely affect, the XRP Ledger. As a result, the XRP Ledger could be subject to new protocols and software in the future that may adversely affect an investment in the Trust.

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The open-source structure of the XRP Ledger’s protocol means that the core developers and other contributors are generally not directly compensated for their contributions in maintaining and developing the XRP Ledger protocol. A failure to properly monitor and upgrade the XRP Ledger’s protocol could damage the XRP Ledger and an investment in the Trust.

The XRP Ledger operates based on an open-source protocol maintained by a group of core developers and other contributors. As the XRP Ledger protocol is not sold or made available subject to licensing or subscription fees and its use does not generate revenues for its development team, the core developers are generally not compensated for maintaining and updating the source code for the XRP Ledger protocol. Consequently, there is a lack of financial incentive for developers to maintain or develop the XRP Ledger and the core developers may lack the resources to adequately address emerging issues with the XRP Ledger protocol. Although the XRP Ledger is currently supported by the core developers, there can be no guarantee that such support will continue or be sufficient in the future. Alternatively, entities whose interests