- Ripple network validators are rallying behind the Clawback function, a promising feature set to be launched on XRPL.
- The feature could also become a catalyst for a massive XRP price pump.
Ripple (XRP) could experience a major price boost if the Clawback proposal gets full support from the Ripple community. So far, Ripple proponents have been rallying behind the proposal, and as a result, it has gained nearly 100% of validator support.
In the Ripple community, the Clawback proposal is the most talked about topic at this time. The proposal is expected to be integrated into the XRP Ledger (XRPL) come February 8. Interestingly, 94% of unique Ripple network validators have already voted in favor of the Clawback function.
Introduced to the Ripple community in 2023, the Clawback function is a feature that adds to the XRP Ledger’s token asset control capabilities. It is also a part of the latest rise pled 1.12.0 release.
Additionally, Clawback will serve issuers by aiding them with enhanced control over their distributed assets by allowing them to regain access to funds from misplaced accounts. Issuers will be able to do this by Clawing back their assets.
As explained in an official description, for regulatory reasons, issuers will be able to recover issued tokens after distributing them to various accounts. As such, issuers can claw back funds sent to sanctioned accounts and utilized for illegal activities.
Should the Clawback feature be adopted, the XLS-39 Clawback feature will enhance trust and safety for issuers; a move that is essential for asset management.
Here’s what the Clawback can do for XRP
David Schwartz, the Chief Technology Officer at Ripple has notably clarified that the Freeze feature, which is already present on the XRPL, is not the same as the Clawback feature. As he explains, the primary use case of the latter is centered around assets that represent actual legal obligations.
These assets include stablecoins “that can be redeemed by its issuer for cash, for example. And a legal obligation can cease to exist for external reasons — due to a court order for example.”
Issues are required to have a means to represent this on a ledger or it would be impossible for them to have assets that represent legal obligations on their ledger and that would be a massive loss, Schwartz reckons.
Meanwhile, Ripple’s XRP could skyrocket from the implementation of this new feature, but there is also a chance that it could do the opposite for the altcoin market value.
With the implementation comes a heightened regulatory compliance which could influence institutional players and build up positive sentiments. Adoption of XRP could increase as a result and consequently, the price of XRP might experience a notable price boost. It is worth noting that this is all still speculative.
At report time, XRP trades for $0.5187, as weekly losses surge past 7%.
