David Schwartz , Ripple CTO and one of the founding architects of XRP Ledger, has proposed a new model involving staking that could drastically change how the blockchain network works.
The discussion unfolded after J. Ayo Akinyele, senior director of engineering at Ripple, wrote a long X thread on the possibility of adding the staking feature to the XRP Ledger.
Related: Ripple CEO has shocking response to CTO's resignation: 'You're my boss now?'
Launched in 2012, XRP Ledger is a blockchain network that uses the Proof-of-Association (PoA) consensus mechanism in which validators reach an agreement on XRP transactions every 3-5 seconds.
On the other hand, blockchains like Ethereum (ETH) and Solana (SOL) use the proof-of-stake (PoS) consensus protocol in which users lock up or stake their crypto assets to become eligible to confirm and add transactions and secure the network. In exchange for their services, these users (nodes) earn crypto rewards.
Ripple engineer explores native XRP staking
From once powering quick money transfers, XRP has come a long way to settle tokenized assets and enable real-time liquidity across markets, Akinyele said.
Now that the first spot XRP exchange-traded asset (ETF) in the U.S. has gone live, the ecosystem is entering a new phase. Akinyele said the development got him and Schwartz thinking about supporting native staking on XRP Ledger one day.
Blockchains like Ethereum and Solana reward validators with incentives but there are no validator rewards at XRP Ledger. Akinyele said that introducing native staking to the blockchain would require:
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A source of staking rewards
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A way to distribute them fairly
Currently, transaction fees are burned to keep XRP supply deflationary.
If it allows staking, the questions of value circulation and sustainable participation reward arise, he added. One way could be sending programmability fees to the reward pool, he proposed.
The financial reward system, including incentives and penalties, could reshape governance dynamics in subtle ways, Akinyele cautioned.
Though XRP Ledger validators participate because they are concerned about network security and not financial rewards, DeFi protocols like Uphold/Flare, Doppler Finance, Axelar, MoreMarkets, etc., have introduced staking and yield instruments for XRP, the developer highlighted and underlined that "innovation around utility doesn't always require core design changes."
Akinyele said though he isn't sure if native staking is appropriate for the network, exploring its possibility reinforces the fact that XRP's purpose isn't singular or static.
Ripple CEO Brad Garlinghouse also weighed in on emerging possibilities for the network.
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Ripple CTO weighs in on centralization risks arising from native XRP staking
WrathofKahneman, a prominent voice on XRP, expressed concern that introducing native staking would increase Ripple's influence over the network as it holds the most XRP tokens to stake.
Ripple CTO David Schwartz responded that his proposal leaves it to the validators whose XRP they accept for staking. But he admitted validators could have their own biases in accepting only their "friends" for staking operations.
Schwartz proposed a two-layer model that includes a "governance token"that would be "worthless"but could be useful in controlling holders by voting. He expanded that anyone can create this "worthless" token and its holders would manage the lists of validators on the ledger.
The self-governing system would replace the current Unique Node List (UNL) system. If the holders of "governance token" mischievously try to take advantage of their power, participants could opt for "fork by governance"and launch a new token.
However, he admitted that "governance by fork" should be the last resort, as it's like "nuclear weapons"which deters misbehavior.
Related: Ripple CTO addresses concerns around firm's leadership
XRP fails to recover
While we don't yet know if XRP Ledger will introduce native staking, we are well aware of the recent ill-fated price trajectory of XRP.
XRP has slipped more than 2% within the last 24 hours as it trades at $2.12 at the time of writing.
This story was originally reported by TheStreet on Nov 19, 2025, where it first appeared in the Innovation section. Add TheStreet as a Preferred Source by clicking here.
