XRP Ledger validator Vet has outlined a technical case for XRP functioning as a store of value, pointing to network design features that enable users to hold and transfer assets without relying on financial custodians.
Vet's argument centers on three core technical properties: XRP cannot be frozen through issuer controls, its supply is fixed at 100 billion units with no expansion mechanism, and users can manage their own transaction authorization through multisigning capabilities.
Issuer-Independent Ownership
The XRP Ledger allows token issuers to freeze certain balances, but this control does not apply to native XRP. Holding XRP directly does not require an issuer to honor redemption requests or maintain access to a token balance. However, this distinction applies primarily to self-custody; exchanges holding XRP on a customer's behalf retain the ability to restrict access.
Fixed Supply Structure
XRP has a maximum supply of 100 billion units with no protocol mechanism to create additional native units. Transaction fees, which carry a standard minimum of 10 drops (0.00001 XRP), are permanently destroyed rather than distributed to validators. These fees serve to discourage spam and network abuse.
Self-Custody and Account Controls
The XRP Ledger's multisigning feature allows accounts to require authorization from multiple keys, which users can distribute across separate devices or coordinate among multiple participants. This design supports independent asset management, though users remain responsible for protecting their credentials and maintaining recovery arrangements.
Built-In Trading Functionality
XRP serves a bridging role on the XRP Ledger's decentralized exchange. The auto-bridging functionality can use XRP as an intermediary between two issued tokens when that route offers improved exchange rates.
These technical features establish the capability for financial autonomy and self-custody. However, store-of-value performance would ultimately depend on sustained demand and long-term confidence in purchasing power.
