Ripple & XRP Ledger Foundation Headed for Nasty Separation

In a significant development, it has become clear that the recent changes involving the XRPL Foundation are not merely a Ripple-led restructuring, but rather a separation between Ripple and the XRPL Foundation. The XRPL Foundation has rebranded itself as the Inclusive Financial Technology Foundation (INFTF), signifying a broader mission to embrace various technologies beyond the XRP Ledger, and likely aligning more with the Xahau blockchain.

This move suggests a divorce rather than a mere reorganization, warranting a thorough examination of the implications for the XRP community.

Who Will Focus on the XRP Ledger?

Since the INFTF is likely not focused on the XRP Ledger, we have to ask: who will? It is important to have an independent entity working alongside Ripple to maintain and develop the XRP Ledger. This rebranding is not just a shift in mission but is actually creating a void in the ecosystem. The absence of a dedicated, independent organization leaves a gap that needs to be filled to ensure the ongoing support and growth of the XRP Ledger. A new solution is urgently needed to address this void and to provide the necessary stewardship for the XRP Ledger's future.

Key Developments:

Monica Long's Clarification:

Monica Long, President of Ripple, clarified the situation in her response to my open letter:

"Hi Jungle, thanks for your questions. As Bharath and David mentioned, more details to come but to clarify for now, the discussions with XRPLF, XRPL Labs, XRPL Commons, Ripple and others are about a new (independent) XRPL foundation -- this is different from the new INFTF organization that Bharath mentioned."

David Schwartz's Response:

David Schwartz, CTO of Ripple, also provided insight:

"Thanks Jungle. We at Ripple have been part of convos with the @XRPLF, @XRPLLabs, @xrpl_commons, etc to discuss the best path forward for a foundation to serve the interests of the XRP Ledger and community (devs, builders, users, projects, exchanges, universities, validators, infra providers, and many more). Folks are aligned on next steps, and specifics will be shared as soon as possible."

Darkhorse Analysis:

Darkhorse highlighted the rebranding of the XRPL Foundation to INFTF, suggesting that Ripple might retrieve control of the XRP IP. He noted potential conflicts of interest between XRPL and Xahau/Evernode and speculated on the future governance structure.

Community Reactions:

• Ms. Rabbit expressed skepticism about the alignment of interests, citing past actions by Ripple to take over the XRPLF board: "It seems like the INFTF announcement suggests that details are still being worked out. It’s an interesting reframe to try to present this as interests being ‘aligned’ when the last public Twitter action Ripple took was to try to take over the board of the XRPLF. Seems misaligned."
  

• Vet emphasized that decentralization does not necessarily require an organization and suggested that community roles could be taken on by others: "No organization is necessary for decentralization, I think this is important to mention. These organizations help foster community and be a liaison for the XRPL. But this can be done by anyone else too."
  

Analysis and Implications:

Separation and Rebranding:

The rebranding of the XRPL Foundation to INFTF indicates a significant separation, likely aligning more with the Xahau blockchain. This suggests a divorce rather than a mere reorganization, with INFTF going its own way.

Negotiation of XRPL Assets:

There are likely ongoing negotiations to transfer or return XRPL assets, such as trademarks, the code repository, and the domain name. This transfer is critical to maintaining the independence and integrity of the XRP Ledger.

Risks and Concerns:

• Overlap with XRPL Labs: The significant overlap between the foundation and XRPL Labs, which is a major third-party developer and infrastructure provider, raises concerns. The separation could disrupt critical infrastructure like full history nodes, the Xumm wallet, and ongoing maintenance and upgrades of the XRP Ledger.
  

• Infrastructure Shutdown: Alloy Networks recently announced the termination of the Zaphod hubs, critical for XRPL infrastructure, by the end of the year: "As indicated earlier, the graceful termination of the zaphod hubs will soon begin. The final hub will terminate at the end of the year. Operators who have hard coded our IPs are urged to work on alternate peering." This shutdown highlights potential vulnerabilities in the network's stability.
  

• Development Projects Leaving: Many development projects are reportedly leaving the XRPL for other chains, indicating possible dissatisfaction with the current state and future direction of the XRP Ledger.
  

• Need for Replacement: Since INFTF will no longer be involved with XRP, the question arises whether a new foundation or decentralized entity will take over these roles. Vet's perspective suggests that such roles can be decentralized, but the practical implementation remains uncertain.
  

Questions and Considerations:

Establishment of a New Foundation:

• How will the new independent XRPL foundation be structured, and who will be the key stakeholders?

• What measures will be taken to ensure it remains truly independent and community-driven?
  

Transition of Assets:

• What are the specifics of the negotiations for transferring XRPL assets?

• How will this transition be managed to ensure continuity and stability for the XRP Ledger?
  

Impact on Infrastructure:

• How will the separation impact the critical infrastructure currently managed by XRPL Labs and other third-party developers?

• What contingency plans are in place to address potential disruptions?
  

Role of the Community:

• How will the community be involved in the new governance structure?

• Can the decentralized approach suggested by Vet be effectively implemented, and what would it look like in practice?
  

Conclusion

While I was correct that something was going on with the XRP Ledger Foundation, I was mistaken about the reasons. This isn't simply an attempt to dominate an independent foundation, but rather a separation between two entities operating on the XRPL. These entities are critical to the maintenance, upgrades, and adoption of XRP. My main concern now is the commitment of XRPL Labs going forward. Will they eventually separate from XRPL and move to Xahau, or is it just the foundation making this move? Given the significant overlap between the company and the foundation, it is difficult to see how a hostile separation wouldn't affect this relationship.

As we stand on the cusp of another potential crypto bull run, clear communication and transparency are more important than ever. The XRP community deserves to understand what these changes mean for their investments and the future of the XRP Ledger. Let's approach this new chapter with optimism and an open mind, but also with a commitment to asking the right questions and seeking the necessary assurances.

A Balanced Perspective

In my mind, there isn't a villain in this story. I want Ripple to be successful, and I genuinely like everyone at the XRPL Foundation and XRPL Labs. I hope they achieve great success in their respective endeavors. We may have just reached a point where these parties need to go their own way. Even if this is a slow separation, my ultimate concern will always be the XRP Ledger and XRP investors. I hope we can get a clear path forward that ensures the interests of users, builders, and investors of the XRPL are protected through this shift. Investors need to know if this is even possible.