An Ethereum Virtual Machine (EVM) side chain of the XRP Ledger (XRPL) will reward chain validators with XRP tokens. That brings Ripple into decentralized finance or DeFi’s staking wars.
Ripple Partner Peersyst Technology’s CEO recently confirmed in an interview that XRPL EVM side chain will reward validators in XRP tokens.
Ferran Prat Tió, CEO of Peersyst Technology, the crypto company developing the XRPL Ethereum side chain, made the announcement in a recent interview with Crypto Eri.
“All these executions will generate fees that will be collected by the XRP Ledger Ethereum side chain validators,” Tió said. Which most of them are also validators of the main chain.
“With the EVM side chain, the main benefit is that the native currency is XRP. Basically, you can still hold XRP. This is mainly for the XRP community. You can hold XRP and use all the EVM contracts without needing to sell.
A popular X analyst for top digital assets and XRPL, Crypto Eri announced on Twitter after the interview, “The New [Ripple] XRPL EVM Sidechain VALIDATORS will be paid in [XRP],” posted with a mind-blown emoji.
“Different than the XRPL mainnet, where #XRP transaction fees are burned, the validators collect these fees on the new Peersyst-built chain,” she said.
The EVM sidechain, which connects to XRPL via a bridge, is a separate network from XRPL and RippleNet. It’s a side chain that lets users operate Ethereum. But it uses XRP as its native token. As a result, it collects gas fees to use Ethereum in XRP, and it rewards validators with Ripple tokens.
“And the most important point is that all these things will create a demand for XRP,” Tió said. “We’ll use XRP to be distributed to the validators of our XRPL system that will bring investment [ … ] we’ll generate an entire economy that is growing in the XRP ledger itself.”