An old interview with blockchain pioneer Jed McCaleb is stirring up fresh debate around Ripple’s XRP. Originally aired by CNBC back in March 2018, the clip recently resurfaced thanks to Stellar community member “Stellar Expert” and it’s brought lingering doubts about how decentralized XRP really is back into the spotlight.
Why McCaleb Walked Away from Ripple
In the clip, McCaleb, who co-founded both Ripple and Stellar, explains why he walked away from Ripple altogether. He said he wanted to create something more open, more accessible, and far less dependent on a single company pulling the strings.
His vision, he argued, was closer to how the internet works: anyone can tap in, innovate, or build without waiting for permission from a central gatekeeper. In his view, Ripple didn’t deliver on that promise because its governance structure concentrated too much power in the hands of one organization.
Stellar Community Raises Tough Questions
Sharing the clip on X, Stellar Expert posed several pointed questions:
- Why does Ripple keep “dumping on retail”?
- How can Ripple allegedly change network rules at will?
- Why does RippleNet rely on validators linked closely to Ripple Labs?
- And what role does XRP truly play for everyday people, given Ripple’s institutional focus?
These questions have fueled a new round of debate over Ripple’s operations and XRP’s broader use cases.
Understanding Ripple’s Escrow System
Much of the criticism about Ripple’s so-called “dumping” stems from its well-known escrow structure. In 2017, Ripple locked away 55 billion XRP in time-based contracts that release one billion tokens each month. Any XRP not sold returns to escrow, and Ripple publishes regular reports to show how much goes back.
Ripple says the system ensures predictable liquidity for its On-Demand Liquidity (ODL) service, which uses XRP to settle cross-border transactions. Most of these tokens go to institutional partners and liquidity providers, not retail investors. Ripple CTO David Schwartz has often stated that the firm uses this setup for transparency and long-term network health, not for quick profits.
Related article: XRP Holders Warned: The One Costly Mistake to Avoid in This Bull Run
Who Controls the XRP Ledger?
Another frequent concern revolves around Ripple’s control over the XRP Ledger. Technically, Ripple does not unilaterally control XRPL. Any proposed update must receive approval from at least 80% of the network’s validators for two consecutive weeks before implementation.
Ripple operates just one validator out of more than 150 globally. While it does maintain a default Unique Node List (UNL) of trusted validators, anyone can opt to follow a different list or run their own. Validators include universities, independent coders, crypto exchanges, and other third parties, ensuring Ripple alone can’t push changes through without broader consensus.
Is XRP Just for Banks? Not Anymore
While Ripple’s core pitch has always focused on institutional use, XRP’s role in the real world goes far beyond big banks. The XRP Ledger is open-source, so anyone can build on it. It’s had a decentralized exchange (DEX) baked in since 2012, enabling cheap, fast trading without middlemen.
Developers are now tapping XRPL for NFTs, tokenized assets like real estate, and even stablecoins like RLUSD. And for regular people, XRP remains a tool for lightning-fast peer-to-peer transfers and cross-border payments with minimal fees, all accessible through major exchanges and wallets.
Final Thoughts: Same Debate, New Cycle
Jed McCaleb’s comments continue to highlight an old tension within the crypto space: balancing company leadership with decentralization. While Stellar Expert’s resurfaced clip raises fair questions, Ripple maintains that its escrow and governance models are designed for transparency, stability, and real adoption, not manipulation.
As XRP evolves, its community will likely revisit these questions again and again, especially as new developers and projects test the boundaries of what the XRP Ledger can do.
