Ripple's Dual-Funding Model Sparks Debate Over Retail Accumulation

Ripple's dual-funding model has been a topic of debate in the cryptocurrency community. The model allows proceeds from XRP sales to fund equity shareholders and stock buybacks, which some critics argue creates a conflict of interest.

This setup is seen as misaligned with retail buyers who are the source of that funding. However, CTO David Schwartz counters that controlled, price-suppressing sales can benefit long-term retail holders by allowing them to accumulate XRP at more favorable entry points.

The debate over Ripple's funding model has not yet altered the fundamental flow of XRP. Ownership remains highly concentrated, with a small number of large holders controlling an outsized share of supply and driving volatility.