Ripple, a major player in the blockchain space, has recently returned 800 million XRP tokens to its escrow wallet right after unlocking 1 billion tokens for this month.
In a series of tweets released today, Whale Alert confirmed the return of 300 million XRP tokens, valued at $209 million, which were safely locked back in the Ripple Escrow wallet following the release of 1 billion tokens for the month of August.
Furthermore, Whale Alert revealed that an additional 500 million XRP tokens, worth over $349 million, were also locked back into escrow in a controlled account.
These XRP tokens, which were initially unlocked in two batches on the 1st of August, have now been securely returned to escrow.
Ripple's Escrow System
The concept of Ripple's escrow system can be likened to a vault that holds a certain number of XRP tokens.
Ripple decided to lock away 55 billion XRP tokens, which is about 55% of its total token supply, in a series of such vaults on its ledger.
Each vault contains 1 billion XRP, and the company plans to unlock them monthly over 55 months.
According to the escrow agreement, Ripple will release 1 billion XRP on the first day of each month.
By doing this, Ripple aims to bring a sense of control and predictability to the token supply, much like how scheduled monthly allowances provide stability and predictability to a person's spending habits.
In line with its objectives, Ripple's controlled release of XRP also contributes to maintaining stability within its ecosystem and fulfilling investors' demands while supporting the growth of the XRP space.