David Schwartz Defends XRP Ledger’s Low Fees as Fee Revenue Debate Grows
David Schwartz, Ripple’s CTO emeritus, has defended the XRP Ledger’s low transaction fees after an X user proposed increasing the network’s base fee to generate greater XRP burns. Schwartz argued that fee revenue rankings can overlook the costs imposed on users who pay those fees. According to his response on X.
Schwartz Challenges Focus on Blockchain Fee Revenue
The discussion centered on whether XRP Ledger should raise its transaction costs as investors increasingly compare Layer 1 networks by the amount of fees they generate. The proposal called for a higher base fee to increase the amount of XRP permanently removed from circulation through the ledger’s burn mechanism.
XRP Ledger currently charges transaction fees that amount to a fraction of a cent. Unlike networks where transaction fees can become revenue for validators, XRP Ledger permanently destroys the XRP spent to process transactions.
The X user argued that this mechanism means the network’s fees contribute to supply reduction rather than becoming income for validator operators. The proposal suggested that validators could vote to increase the base fee tenfold or even one hundredfold while keeping individual transactions below one cent.
Supporters of the idea acknowledged that low-cost and fast settlement remains part of XRP Ledger’s appeal for payments and tokenization applications. The argument instead focused on whether a larger fee burn could improve how the network is viewed in comparisons based on blockchain revenue.
XRP Ledger Has Burned 14.4 Million XRP
XRPscan figures cited in the exchange show that XRP Ledger has burned 14,403,762 XRP since its inception. That amount represents approximately 0.014% of XRP’s original 100 billion supply.
The relatively small cumulative burn reflects the network’s low transaction costs. Raising the base fee would theoretically accelerate the rate at which XRP is destroyed, according to the proposal discussed in the exchange.
Schwartz questioned whether fee-revenue rankings provide a useful measure when they emphasize money collected by blockchain operators while giving less attention to the people paying those charges. His response focused on the financial burden higher fees can create for users rather than the amount of revenue a network records.
The exchange therefore highlights two different approaches to XRP Ledger’s fee structure: increasing costs could produce more XRP burns and improve fee-related metrics, while maintaining low fees keeps transaction costs lower for users. Schwartz’s position favors the latter consideration and challenges the idea that higher fee revenue necessarily represents a stronger outcome for a blockchain.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.