Ripple Labs Chief Technology Officer (CTO) David “JoelKatz” Schwartz has weighed in on New Dev Null Productions’ choice to cease its contribution towards XRP and its ecosystem, offering perspective on the development.
Ripple CTO Advocates For XRP
On Tuesday, Dev Null Productions announced its decision to discontinue its contribution to XRP and its ecosystem, which the company dubbed “The end of an era,” triggering speculations within the community.
The company stated that one of its reasons for cutting ties with the payment firm boils down to faith or rather the absence of it. Additionally, the decision of Ripple’s top leadership to sell its XRP at the cost of retail investors served as the major driver for the firm’s action.
Dev Null believes that by taking this step, Ripple has demonstrated that the people in charge do not have enough faith in XRP to give up short-term financial benefits that come at the expense of the hardworking community.
Even though the leaders talk well in front of cameras or an audience, Dev Null believes they still lack transparency and accountability to the people they owe their success to, noting that actions speak louder than words.
Responding to the firm’s claims, Schwartz stated that even if you wish to hold XRP, selling the coin is almost impossible to avoid. David Schwarts then drew attention to a previous post regarding the tax implications involved in obtaining XRP from the company.
Offering an instance, Schwarts noted that if Ripple awarded him a bonus of 1 million XRP tomorrow, he would be forced to sell roughly half of it right away. This is because he has a marginal tax rate of nearly 50% on earned income from both Federal (Fed) and California (CA) states.
Without a doubt, Dev Null Productions has been a significant contributor to the XRP ecosystem, supporting several events and developments within the ecosystem. In the past six years, the company has been a sole supporter of the NYC/XRP meetup, Ripple Swell event, Ripple Drop Interview, Rippled source code, Xrpintel – the first independent XRP data and analytics projects, San Francisco Blockchain Week, and among others.
Difficulty In Distribution The Crypto Asset
Addressing the concerns about XRP’s distribution, the Ripple CTO claims the process is somewhat challenging. According to Schwartz, there is a common complaint among community members that the distribution is too concentrated, followed by complaints that there is too much distribution. Thus, this tends to remain this way as there is nothing more that can be done, and there are no available options.
However, the community seems to disagree with Schwartz as a member offered an option saying the company should purchase something else that moves and makes money.
“In the event that we take no action with our XRP, the distribution stays concentrated,” Schwarts responded, since the concentration of XRP with Ripple is a common and valid complaint within the community.
Featured image from iStock, chart from Tradingview.com