- Nearly 40 million RLUSD torched
- Why does Ripple burn RLUSD?
Ripple has conducted a large RLUSD burn in less than an hour as the San Francisco-based blockchain firm remains committed to controlling the amount of its stablecoin in circulation.
As of Thursday April 2, Ripple Stablecoin Tracker, a platform that monitors the minting and burning of RLUSD tokens, has provided data on the company’s latest stablecoin burns.
Nearly 40 million RLUSD torched
According to data provided by the tracker, a total of 39,998,800 RLUSD has been transferred to null addresses in less than an hour, where they can never be retrieved.
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While this move has permanently removed the tokens from circulation, the massive burn activity happened in three separate transactions, all across the Ethereum blockchain.
The first burn was the largest, involving 20 million RLUSD, which was immediately followed by a brief token minting. Nonetheless, the remaining two burn transactions happened consecutively, carrying 9,999,000 and 9,999,800, respectively.
Why does Ripple burn RLUSD?
The consistent RLUSD burns from Ripple have begun to spark the curiosity of XRP community, as a developer on X has recently raised a question about the activity.
A few hours before the latest RLUSD burn, a developer within the crypto community publicly called on Ripple CEO Brad Garlinghouse to explain why RLUSD burns happen.
While he backed his curiosity with the concern that transparency could help prevent false speculation, the developer stated that it would greatly benefit the industry if Ripple provided an explanation for the RLUSD burns.
Although the Ripple CEO has yet to issue any response to this demand, the concerned user added that a lack of communication could create a vacuum filled with rumors and conspiracy theories regarding the firm and its operations.
Source: https://u.today/ripple-burns-40-million-rlusd-after-community-demands-explanation
