Ripple News: XRP Holders are 60% Closer To Generate Passive Income – Here’s How

The post Ripple News: XRP Holders are 60% Closer To Generate Passive Income – Here’s How appeared first on Coinpedia Fintech News

In a recent tweet, Panos Mekras, founder of Anodos Finance, revealed a positive development for the XRP Ledger community. With 20 validators now voting in favor of the XLS-30D Automated Market Maker (AMM) Amendment, a strong 60% consensus has been achieved, presenting a promising outlook for its approval.

Growing Validator Consensus

Originally disclosed with a 57.14% consensus, XRPL blockchain explorer XRPScan’s data indicates a 60% approval rate, with 21 validators endorsing the AMM amendment. This marks a remarkable increase from the previous rate of 16 yes and 18 no votes on December 7.

The XLS-30D AMM Amendment holds great potential for XRP holders, offering a road to passive income. By integrating Automated Market Maker functionality into the XRPL, the amendment enables users to contribute liquidity to decentralized exchanges, earning a proportionate share of profits with associated exchange risk.

Fundamentally, the amendment introduces a liquidity staking pool where XRP holders can actively participate. Each AMM instance has a dedicated account, securing assets and issuing liquidity pool tokens to contributors. Holders can vote on the AMM’s trading fee based on their share of LP assets.

Community Enthusiasm

Community interest in engaging with AMM liquidity provider services has been evident, with 75% of respondents in a Stedas poll expressing a willingness to participate. The successful implementation of smart contract functionality, dependent on an 80% validator endorsement, could open doors for XRP holders to diversify their earnings.

Despite concerns about potential drawbacks like market volatility and manipulation, the XLS-30D code base has undergone a thorough audit by security firm CertiK, receiving an impressive security score of 95/100.

Hence, as the XRPL AMM Amendment gains increasing consensus and potential approval, the XRP community has hopes for new opportunities to generate passive income.