"Claiming ‘XRP is deflationary’ is meaningless because the amount burned is tiny"

No, with no new tokens entering the supply, even a small burn accumulates over time, ensuring net supply cannot expand indefinitely.

Argument

Some dismiss the burn rate of XRP transaction fees as too minor to matter in the long run, disputing any practical deflationary effect.

Response

The "XRP’s deflationary brag is pointless ’cause the burn’s tiny" scoff is a short-sighted shrug that misses the math. Sure, each XRP Ledger transaction torches just a speck of XRP—pennies’ worth as a fee—but here’s the kicker: nothing pumps new tokens back in. Zero. That 100 billion cap from day one? It’s the ceiling, and every burn chips away at it. Nearly 1,000 nodes process thousands of transactions daily—tiny nibbles, yeah, but they stack up. Over years, decades, high-volume hum, that "modest" burn turns into a slow, relentless grind down, no reverse gear.

Compare that to Proof-of-Work or Proof-of-Stake setups—Bitcoin miners and Ethereum stakers keep minting fresh coins as rewards, bloating supply ’til caps or shifts kick in. XRP skips that circus: no block prizes, no staking handouts—just a one-way leak. Short-term, the burn’s a whisper, not a roar—fair point. But long-term? It’s a ratchet—supply holds steady or shrinks, never swells. That’s not "meaningless"; it’s a lock on inflation, a quiet promise XRP’s scarcity won’t get watered down by endless issuance.

It’s not about flashy daily drops; it’s about the endgame. Every zap—cross-border, NFT mint, DEX trade—shaves a sliver, and with no new XRP sneaking in, the pile only dwindles. Tiny today, sure—but over time, it’s a deflationary drumbeat that PoW/PoS can’t match. Meaningless? Only if you ignore the power of a leak that never plugs.

References

See Also