Ripple CTO Explains Why XRP Has a Supply of 100B Tokens

Responding to questions from a curious mind, the Ripple CTO, David Schwartz, has mentioned three reasons XRP launched with a supply of 100 billion tokens.

Notably, when David Schwartz, Arthur Britto, and Jed McCaleb built the XRP Ledger in 2012, they launched XRP as the network’s gas token, with its total supply set at 100 billion coins.

Unlike Bitcoin, which depends on constant mining, XRP’s full supply already existed at launch, with all 100 billion tokens pre-mined. However, the developers could have chosen any number, leading to questions about why they settled for 100 billion.

First, on the divisibility front, XRP’s large supply allows the token to support smaller transactions across the network. For context, each XRP divides into one million smaller units known as “drops,” making it possible to send or receive tiny amounts.

Secondly, Schwartz’s latest response confirms that the total 100 billion tokens fit inside a 64-bit unsigned integer, which can store numbers up to more than 18 quintillion. This makes it easier for the XRP Ledger to process transactions quickly, as the network avoids rounding errors.

According to Schwartz, the third reason behind the 100 billion cap is simplicity. This indicates that they wanted a round number that people could easily understand and remember.

Is 100B Too Much or Too Little

Interestingly, several other XRP community figures have shared their opinions about the supply choice. Last December, Versan Aljarrah, co-founder of The Black Swan Capitalist, said demand for tokenized assets, stablecoins like RLUSD, and liquidity solutions keeps increasing.

He believes this growing demand puts XRP at the center of the digital economy and that the current 100 billion supply may not be enough to meet future needs, which could lead to a supply crunch.