Understanding the Difference: Why Ripple Needs Both XRP and RLUSD

• Community members have pointed out XRP’s status as a liquidity engine rather than a gas token
• Last year, Ripple’s CTO David Schwartz said that XRP is the only asset that can be used to pay transaction fees on the XRPL
• Since its launch, RLUSD has seen notable adoption, with over 95% of its transactions occurring on the XRPL

The somewhat recent launch of Ripple’s RLUSD stablecoin has sparked discussions within the XRP community on X, with members debating XRP’s evolving role versus this new digital dollar. Some community members express concerns that RLUSD might diminish XRP’s utility, especially in areas like cross-border payments and liquidity provision.

Community Concerns: Will RLUSD Sideline XRP’s Utility?

One community member particularly highlighted Ripple’s shift to minimize XRP’s role, focusing it mainly on transaction fees, since RLUSD can be used for everything else. However, others pointed out XRP’s status as a liquidity engine rather than a gas token, meaning XRP facilitates efficient value transfer across the XRPL, not just covering transaction fees like Ethereum’s gas.

There were also some rude words thrown in, but what else can you expect…

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