Ripple XRP Escrow Status

Interesting Facts about XRP Escrow

• Predictable Supply: Ripple locked 55 billion XRP into a series of on-ledger escrows in 2017 to provide predictability to the XRP supply.
• Monthly Releases: Typically, 1 billion XRP is released from these escrows on the first day of each month. However, the timing can sometimes vary.
• Usage & Re-locking: Ripple uses the released XRP for operational needs, investments, partnerships, and sales. Any unused XRP from the monthly release is typically re-locked into new escrows, often with expiry dates far in the future.
• On-Ledger Mechanism: The escrows are native features of the XRP Ledger. The ledger's consensus rules control the release of XRP, not Ripple directly after creation.
• Types of Escrow: The XRP Ledger supports time-based escrows (release after a specific date), condition-based escrows (release requires cryptographic proof), or a combination of both. Ripple's main escrows primarily use time-locks.
• Total Supply Context: XRP has a fixed initial supply of 100 billion. Escrow is a major factor in managing the circulating supply.
• Learn More: You can read the official explanation from Ripple or explore the technical details on the XRP Ledger Dev Portal.

Understanding XRP Ledger Escrow

Think of the XRP Ledger's Escrow feature like a secure, automated digital safe deposit box built directly into the ledger technology. Instead of relying on a bank or a lawyer to hold funds until a deal is done, the XRP Ledger itself locks up XRP according to strict, pre-defined rules.

This guarantees that the locked XRP can only be accessed or delivered once certain conditions are met. It makes transactions more trustworthy because the rules are enforced automatically by the network, removing the need for a human middleman.

How XRP is Released from Escrow:

• Time Lock: The simplest way. The XRP becomes available only after a specific date and time has passed. This is the primary method used for the large Ripple escrows tracked on this page.
• Secret Code (Conditional): The XRP is released only when someone provides a unique cryptographic "key" (called a fulfillment) that matches a pre-set condition, like solving a digital puzzle.
• Combination Lock: Requires both conditions to be met – a specific time must pass and the correct secret code must be provided.

What Happens During an Escrow?

• Setup: Someone sends a transaction to create the escrow, defining how much XRP to lock, who should receive it, and the rules for release (date, code, or both). They can also set an expiration date.
• Release: Once the rules are met (the release date arrives, or the correct code is supplied), the intended recipient can create a transaction to claim the XRP.
• Expiration/Cancellation: If an escrow has an expiration date and isn't successfully claimed before that date passes, it expires. Anyone can then cancel the expired escrow, and the XRP automatically returns to the original sender's account.

Why is Escrow Important for Ripple's XRP?

As mentioned in the "Interesting Facts" above, Ripple used this time-lock escrow feature back in 2017 to place 55 billion XRP under automated release schedules. This was done to provide predictability about how much XRP Ripple could potentially bring into the market over time. The calculation at the top of this page focuses specifically on the amount of XRP still held in these known, time-locked Ripple accounts.

Good to Know:

• Escrow on the XRP Ledger currently works only with XRP, not with other tokens issued on the ledger.
• There are small network transaction fees (paid in XRP) for creating an escrow and for releasing or cancelling it. Releasing an escrow that requires a secret code costs slightly more due to the extra verification needed.