Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 140

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 140
---
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, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets, although the participation landscape is
beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial marketplace in comparison
to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated by speculators and investors
seeking to profit from the short- or long-term holding of digital assets.

Retail Sector

The retail sector includes
users transacting in direct peer-to-peer XRP activity through the direct sending of XRP over the XRP Ledger. The retail sector also includes
transactions in which consumers pay for goods or services from commercial or service businesses through direct transactions or third-party
service providers, although the use of XRP as a means of payment is still developing and has not been accepted in the same manner as
bitcoin because XRP has a generally different purpose than bitcoin.

Service Sector

This sector includes companies
that provide a variety of services including the buying, selling, payment processing and storing of XRP. For example, Coinbase,
Kr