Hoskinson Exposes the Flaw in Ripple's Tokenomic Model

Charles Hoskinson, a prominent figure in the cryptocurrency space, recently shared his thoughts on the tokenomic model of Ripple's XRP. According to him, XRP holders do not benefit from the company's successes. This is because Ripple retains the majority of the supply, with around 70-80% held by the company.

Hoskinson compared this to other tokenomic models, such as those used in Midnight and Hyperliquid. He argued that these models create direct buy demand for the underlying tokens through network activity, leading to value flowing back to holders.

In contrast, Hoskinson stated that there is no mechanism within the Ripple network to create buy demand for XRP. This means that even if the company is successful in driving up prices with its marketing efforts, the benefits do not trickle down to XRP holders.