Ripple's Centralized Structure: A Major Concern for XRP Holders?

Crypto industry executive Charles Hoskinson has shared his thoughts on the structure of the XRP tokenomics, highlighting what he sees as a key issue with the way Ripple's business operates. In a recent discussion, Hoskinson pointed out that Ripple holds between 70-80% of the total XRP supply. This means that when the company generates revenue from selling XRP, the funds do not flow back to the token holders.

Hoskinson emphasized that this setup is similar to other centralized entities like Tether, where one company retains control and value, while holders are left with a token that does not appreciate in price. In contrast, he argued that well-designed tokenomics models, such as those used by Midnight and Hyperliquid, create direct buy demand for the underlying tokens through network activity.

Ripple's setup has been likened to the EOS situation, where Block One retained $4 billion raised for building the EOS network. The company declared it had no fiduciary obligation to the ecosystem and instead used the funds to its own advantage. This precedent suggests that Ripple may be prioritizing its own interests over those of XRP holders.