Xumm Ends XRP Burn for XAH Minting on Xahau Sidechain
The Xumm team, formerly known as Xaman, has decided to discontinue its Burn2Mint (B2M) program involving XRP and XAH, the native token of the XRPL sidechain Xahau. This decision comes after a vote by the team led by founder Wietse Wind.
What was Burn2Mint?
The B2M mechanism, introduced earlier, allowed users to directly acquire XAH tokens by burning XRP. This eliminated the need for users to rely on secondary markets or complex cross-chain bridges. Essentially, users could burn XRP and mint an equivalent amount of XAH.
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🚨 There’s been a rather big CHANGE for the #XRP ecosystem.
Burn to mint : “B2M to zero” Code has been merged to the Xahau Network, for a next new version, that validators vote on. Ending the burn 🔥 of #XRP to $XAH token issuance, locking in low supply.https://t.co/SBvHW3FCsp
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) April 2, 2024
The B2M program was designed to gradually decrease the yield over time, ultimately reaching zero to regulate the distribution of XAH and prevent inflation. However, the Xumm team has opted to expedite this process.
Reasons for Ending B2M
Several factors contributed to the Xumm team’s decision. The increasing availability of XAH on secondary markets eliminated the initial need for B2M as a primary acquisition method. Additionally, potential regulatory concerns may have played a role in the swift termination.
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Impact on Users
The amendment, now passed, effectively reduces the B2M yield to zero. While users can no longer mint XAH through B2M, core functionalities like account activation and key management will continue. The Xumm platform’s infrastructure remains operational to support its user base.
The Future of Xahau
Launched last November, the Xahau sidechain offered users the benefits of the XRPL network along with additional functionalities like smart contracts through Hooks, not yet available on the XRPL itself. This positioned Xahau as a testing ground for Hooks before its official XRPL integration.
The decision to end B2M does not affect Xahau’s core functionalities or its potential as a testing ground for XRPL innovations. However, it does mark a shift in XAH’s acquisition methods, requiring users to rely on secondary markets for now.
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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
