Problem Statement

Restricted XRP Utility

While XRPL has been efficient, affordable, and fast in facilitating global payments and exchanges, the lack of smart contract support has confined the usage of XRP mostly to payment transactions. This narrow utility has led to fewer on-chain activities and consequently, reduced transaction fees generated for the network.

Asset Allocation Inefficiency Across Chains

XRPL’s sidechains each have their distinctive merits: Coreum introduces a unique smart token model allowing function executions without demand, the EVM-sidechain facilitates the operation of EVM contracts using assets circulating within XRPL, and Futureverse is honed in on powering the Metaverse and AI functionalities.

Despite these sidechains being under the XRPL umbrella and utilizing XRP for gas fees, there’s an absence of an integrated platform to foster liquidity or enable cross-chain asset swaps. This shortfall has culminated in a suboptimal asset allocation within the ecosystem, thereby stifling its potential growth.

Bootstrapping Needs for Emerging Sidechains

With XLS-38d pending approval through voting, each sidechain is nascent and encounters low Total Value Locked (TVL) and user activity. For these chains to evolve and thrive, early-stage engagement from the established main chain, XRPL, is indispensable.