Amid weeks of price increases for major tokens, a governance vote on Tuesday reduced the minimum fees for opening an account on XRP Ledger (XRPL), the network that uses XRP, by 90%.
“In collaboration with other UNL validators, we voted to reduce the #XRPL reserve,” network validator @aesthetes_art admitted in an X post. “It’s now 10 times cheaper to start operating on XRPL.”
The account reserve has moved from 10 XRP to 1 XRP, and the trust line or object creation fee has decreased from 2 XRP to 0.2 XRP.
Account activation on the XRP Ledger refers to the process by which an account becomes operational or usable on the network. Reserve is the minimum amount held in an XRP address for transferring funds.
All XRP addresses start in a deactivated state. This means that you will not be able to send or receive funds until it is activated. Creating multiple accounts is costly, so they are locked to prevent spam accounts.
Base reserve requirements, on the other hand, are fees associated with owning objects on the ledger. An object is any data element stored in a ledger, such as payment channels, escrows, offers, transaction information, etc.
Account creation activity on XRPL has surged in recent days, with more than 30,000 accounts created early Monday (compared to less than 2,000 the previous week), according to network data, leading to lower fees.
Due to several fundamental and regulatory developments, XRP price has risen more than 400% in the past 30 days, becoming the third largest token by market capitalization on Sunday and surging to price levels not seen since early 2018. .
