First Ledger Ties Token Distribution to XRP Burn: Details
First Ledger, a leading trading platform on the XRP Ledger (XRPL), has introduced a new method for token allocation in its launchpad program.The team shared the update in a post on X earlier today. For context, First Ledger offers a platform to launch tokens on the XRPL network without requiring KYC. It introduced a public beta test in October 2024, and since then, the XRP community has seen an explosive rise in meme coin launches.Notably, the latest update directly ties token allocation to the amount of XRP a creator burns at the launch event. This move incentivizes token developers to engage more deeply.Burn More XRP, Unlock More TokensSpecifically, the new system establishes the following tiers for token allocation based on the amount of XRP burned: Burn 100 to 499 XRP: Users can qualify for a token allocation ranging from 0% to 10%. Burn 500 to 999 XRP: Token allocation increases from 0% to 20% Those who burn 1,000 XRP or more will be eligible for a token allocation of 0% to 30%.Move Prevents XRP Network from Scams and Rug PullsThis update has attracted admiration from members of the XRP community. Many have commended First Ledger for this move, seeing it as a way to incentivize honest participation. Specifically, some view it as a barrier that can help mitigate bad actors.Notably, the burning mechanism could reduce the risk of "rug pulls," where developers abandon a project or run away with funds. In this case, developers would need to burn significant XRP to claim a large portion of the token allocation.By tying token allocations to burning XRP, it prevents developers from easily holding large amounts of tokens without having "skin in the game," thus reducing the incentive for malicious actions like rug pulls.Critics ReactMeanwhile, some market participants have expressed concerns about the update. One user, "AltcoinMage," voiced their skepticism, suggesting that the new system allows XRP whales to game the system. They called the token allocation based on the burn amount a "pretty big red flag."In contrast, another commenter argued that the update improves the previous system. They pointed out that under the old model, one could launch a token with a 30% allocation by burning just 125 XRP and then potentially rug pull immediately."This update prevents some abuse," the commenter stated.https://twitter.com/DiXrpl74009/status/1887305605481943169
Text source: The Crypto Basic
