Ripple's Chief Technology Officer, David Schwartz, has clarified the reasoning behind the XRP Ledger's decision to issue a total of 100 billion XRP tokens. This explanation addresses community questions regarding the choice of such a substantial supply.
When the XRP Ledger was launched in 2012, its founders, David Schwartz, Arthur Britto, and Jed McCaleb, pre-mined all 100 billion XRP. Unlike cryptocurrencies like Bitcoin that release new coins gradually through mining, XRP's entire supply was created at its inception. This fixed total has been a recurring point of discussion among users.
Origin of the Question
The recent discussion was prompted by a question from Diep Sanh, a prominent XRP supporter, on X. Sanh inquired about the rationale behind the XRP Ledger's creators selecting a total supply of 100 billion tokens, questioning if there was a technical or symbolic basis for this figure.
In response, Schwartz detailed three primary factors that influenced the decision: the necessity for divisibility to accommodate small transactions, the requirement for the total supply to fit within a 64-bit integer for efficient processing, and the goal of establishing a simple, memorable number.
To meet three criteria:
1) Adequate divisibility.
2) Fits in 64-bit integer.
3) Easy for humans to remember.— David 'JoelKatz' Schwartz (@JoelKatz) October 29, 2025
Reasons for the 100 Billion Supply
Schwartz first explained that the substantial supply ensures XRP can be divided into minute units, known as drops, to support microtransactions. Each XRP token can be split into one million drops, enabling the network to efficiently handle very small payments. This level of precision is crucial for XRP's function as a utility token in cross-border transactions and payment settlements.
He also pointed out that while the XRP Ledger has a defined limit on how finely tokens can be divided, the current structure is more than sufficient for its intended use cases. The system's divisibility ensures that XRP can facilitate both large-value transfers and minimal-value transactions with ease.
The second reason cited is technical compatibility. By setting the total XRP supply at 100 billion, the ledger ensures that all token amounts can be represented within a 64-bit unsigned integer. This data type can store numbers exceeding 18 quintillion, which helps the ledger avoid rounding errors and maintain rapid transaction processing.
Finally, Schwartz mentioned that the number was chosen partly for its simplicity. A round figure like 100 billion is more easily remembered and discussed by users, making it more accessible to the public compared to arbitrary or uneven totals.
Community Perspectives on XRP's Total Supply
Beyond Schwartz's statements, various community members have shared differing views on whether the 100 billion supply is adequate.
In December 2024, Versan Aljarrah, co-founder of The Black Swan Capitalist, argued that the increasing demand for tokenized assets, stablecoins such as RLUSD, and liquidity solutions might make XRP's total supply appear limited in the future. He suggested that as tokenization and institutional use cases expand, demand could potentially outstrip availability.
Similarly, in June 2024, game developer Chad Steingraber highlighted that a significant portion of XRP is held in escrow or by large investors. According to his assessment, the amount of XRP circulating in the open market is considerably less than the total supply, which could lead to scarcity over time if demand increases.
Another community member, Dave Lui, expressed a comparable view in 2020. He noted that while 100 billion XRP might seem large, it becomes logical when considering the asset's evolving role in financial systems and the growing participation of institutions that are likely to hold substantial amounts for extended periods.
In March 2024, XRP supporter Jack the Rippler defended the figure, stating that addressing global payment inefficiencies, a market valued in the trillions of dollars, necessitates a high supply to ensure sufficient liquidity across global markets.
David Schwartz's explanation underscores that XRP's 100 billion token supply was a deliberate choice, not an arbitrary one, aimed at balancing divisibility, system efficiency, and user accessibility.
While some within the community anticipate that this supply might become insufficient as XRP adoption grows, others view it as a necessary foundation for a network designed to support global-scale payments.