TLDR
- Charles Hoskinson recommended Ripple commit 20% to 30% of earnings to systematic XRP buybacks.
- Hoskinson observed that Ripple sells XRP while maintaining profits internally.
- The Cardano founder noted XRP holders receive no ownership rights in assets purchased with XRP sale proceeds.
- Hoskinson drew parallels between Ripple’s approach and Block.One’s management of EOS capital.
- Ripple acknowledged purchasing XRP on secondary exchanges beginning in 2020.
Cardano founder Charles Hoskinson proposed that Ripple establish a direct financial link between company revenue and XRP through systematic token buybacks. During an appearance on Paul Barron’s podcast, Hoskinson outlined his position. He recommended Ripple designate 20% to 30% of company earnings to acquire XRP from open markets.
Cardano Founder Questions Ripple’s Token Economic Structure
Hoskinson responded to a viewer inquiry regarding Ripple’s potential strategy if the Clarity Act gains legislative approval. He expressed skepticism that Ripple would implement a formal XRP buyback initiative. He predicted Ripple would maintain its current approach of selling XRP while keeping revenue within corporate accounts.
Hoskinson emphasized that Ripple generates billions from XRP transactions and deploys those funds toward asset acquisition. He stressed that XRP holders gain no equity stake in these purchased assets. He observed this operational framework has remained consistent for over a decade.
“Ripple will keep selling XRP and then buy hard assets inside the company,” Hoskinson stated. He emphasized that token holders receive zero participation in those corporate acquisitions. He stressed Ripple faces no legal obligation to share profits with XRP holders.
Barron countered that Ripple channels capital back into the XRP Ledger infrastructure. He emphasized this reinvestment fuels product innovation and network expansion. Hoskinson responded that ecosystem funding differs fundamentally from direct token buyback programs.
Historical XRP Acquisition Data and Token Distribution
Hoskinson referenced projects like Hyperliquid as models for buyback-centered token economics. He suggested a structured buyback program would enhance XRP’s market positioning. He emphasized that allocating 20% to 30% of revenue would create stronger alignment between Ripple and XRP holders.
Hoskinson drew comparisons to Block.One’s relationship with EOS. He noted Block.One secured $4 billion in funding but subsequently declared it held no fiduciary responsibility to EOS token holders. He suggested Ripple functions within a comparable organizational framework.
Ripple has publicly confirmed XRP acquisitions on secondary markets beginning in 2020. The company documented these transactions through its XRP Markets Reports. The company explained these purchases facilitate On-Demand Liquidity operations and support market depth.
During Q1 2022, Ripple acquired $1.081 billion in XRP while recording net sales of $273.27 million. In Q2 2022, acquisitions climbed to $1.717 billion while ODL-related sales reached $2.126 billion. The company documented net sales of $408.9 million for that quarter.
By Q1 2023, Ripple documented $2.569 billion in XRP acquisitions. The company logged net sales of $361.06 million during that timeframe. Ripple clarified these transactions maintain supply for payment infrastructure rather than function as conventional buyback programs.
Hoskinson additionally questioned Ripple’s initial XRP distribution framework. He noted Ripple maintained between 70% and 80% of total XRP supply at network launch. He contended this allocation provided the company substantial influence over token circulation.
Hoskinson explained Ripple can liquidate XRP, accumulate capital, and grow its commercial operations. He emphasized that holders maintain only token access and network utilization rights. He likened this framework to Tether, where the issuing entity captures primary economic value.
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