XRP Ledger Validators Are Closer to Activate Clawback Feature

On January 25, the team behind the Clawback feature made an announcement of receiving 80% approval from the XRP Ledger’s validators. The feature was deactivated by default and required triggering the trust line for reactivation.  According to the document released by XRP, it is necessary to trigger the trust lines to enable XRP Ledger’s use cases.   

The Clawback Feature Insights 

Validators on the XRP Ledger are finally moved into the final stage of Clawback feature approval, once deactivated mistakenly. 

Based on the tweet by The Ripple Effects on January 25, Clawback features reached over 80% approval from the network’s validators and is expected to reactivate by February 8, 2024. 

The clawback feature introduces a significant functionality for developers to reverse the token transactions under particular conditions, mainly during fraud and regaining access to the account. Trust lines, on the other hand, are the structures in the XRP Ledger for sustaining fungible tokens.

Reactivation of the feature will not only promote transparency to the network but also permit users to verify the feature’s current situation. These features thus, help in maintaining informed decisions and transparency in transactions.   

In addition to this, enabling the feature will not replace the Freeze feature which permits validators to freeze assets in particular situations. Moreover, both the features combined will empower validators to handle circumstances like hacks and transactions more systematically.

What Next? 

Apart from the Clawback feature, the XRP Ledger is also working on other upcoming upgrades and Automated Market Maker (AMM). The update will emerge as an on-chain source of income for the XRP token holders. 

The AMM trading platform permits cryptocurrency trading using liquidity pools despite traditional order books. All the actions including liquidity pools, trades, user sharing, and prices are determined through blockchain oracles.

Surprisingly, the development gained support from the validators. Focusing on the benefits, the trading platform mitigates the requirement for order books and intermediaries. Hence, reduces the transaction time and cost. 

Moreover, high liquidity and low slippage on the other side, help users to trade with the pool without worrying about the market conditions. Furthermore, investors will also benefit from the new trading platform.

Investors contributing to the liquidity pool will be offered with shares of fees gathered from each trade. However, such benefits come with the risk of impermanent loss. The crypto market is highly volatile and price fluctuations change the token’s ratio in the pool which may result in impermanent loss.    

The blockchain network was introduced in June 2012. Currently, the XRP price is $0.5304, a hike of 1.99% in the past 1 day. Also, the 24-hour volume is $789.9 Million with a market cap of $28.8 Billion. It has a maximum supply of 100 Billion tokens and a circulation supply of $54,374,512,255 tokens.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.