The head of engineering at RippleX announced on the 19th a new proposal to introduce native staking to the XRP Ledger (XRPL), aiming to bring yield-generating capabilities to the network without altering its existing consensus algorithm.

?BREAKING:

RIPPLE ENGINEERS ARE OPENLY DEBATING NATIVE $XRP STAKING.

XRPL’S ENTIRE INCENTIVE MODEL COULD EVOLVE. pic.twitter.com/SsvYL4xfJD

— STEPH IS CRYPTO (@Steph_iscrypto) November 20, 2025

Currently, XRPL operates with a fee-burn structure, where transaction fees are destroyed rather than distributed to validators. This design has historically enabled low-cost, high-speed transactions but left the ledger without a built-in reward mechanism.

RippleX’s J. Ayo Akinyele outlined a method to create a staking reward pool using XRPL’s existing programmability, while preserving the ledger’s core architecture. According to the team, this would allow institutional investors to earn yield on their XRP holdings without compromising the ledger’s performance.

Institutional Demand for Yield and the Push Into DeFi

The proposal comes shortly after XRPL introduced smart contract capabilities in November 2025 and amid rising institutional adoption fueled by new crypto ETFs launched by Canary.

Demand for yield-bearing mechanisms has surged as more institutions incorporate XRP into their portfolios. Evernorth recently submitted a proposal to the U.S. Securities and Exchange Commission (SEC) involving USD $2.5 billion in reserve assets, signaling growing institutional commitment.

Meanwhile, Concrete and Figment are partnering to offer insured validator services for enterprises, enabling secure delegated staking and re-staking options.

At present, XRP holders seeking yield rely on EVM-compatible sidechains or liquid staking solutions like “mXRP.” A native staking mechanism would consolidate these functions directly into XRPL, strengthening its competitive position in the DeFi market.

Providing such services through compliant financial infrastructure may help XRPL differentiate itself from other digital assets in institutional environments.

Technical Challenges and Maintaining XRPL’s Architecture

Unlike traditional proof-of-stake (PoS) networks, XRPL’s architecture does not assign voting power based on token holdings, and transaction fees are burned rather than paid out. This makes it impossible to simply replicate standard PoS staking models.

Developers must therefore design new incentives without disrupting XRPL’s hallmark properties: high throughput, rapid settlement, and strong security.

According to RippleX documentation, options under consideration include introducing validator classes selected by stake weight and using transaction fees to support zero-knowledge proof verification for smart contract execution.

These approaches aim to deliver rewards without compromising the core neutrality and efficiency of the network.

Still, some community members worry that staking may undermine XRPL’s long-standing neutrality by shifting validator incentives. The outcome of these discussions will shape how Ripple competes in the rapidly evolving DeFi landscape.

As XRPL seeks to expand its financial capabilities, balancing performance, decentralization, and compatibility with decentralized exchanges (DEXs) will remain a key challenge.