What is the use of XRP? Chainlink supporters engage in a heated debate with Ripple's Chief Technology Officer.

Chainlink supporter Fishy Catfish harshly criticized Ripple CTO David Schwartz's non-validator fee model for the XRP Ledger (XRPL) during a debate, questioning XRP's lack of a sustainable revenue mechanism, which mainly relies on speculation, and referred to it as a “bank-themed meme coin.” Although Schwartz defended that low costs are key, critics pointed out that the RLUSD stablecoin's custody on Ethereum far exceeds that of XRPL, reflecting the shortcomings of the XRP Ledger in terms of actual utility and developer participation.

Core Controversy: Economic Sustainability of the Free Usage Model

The focus of the debate is on the payment structure for validators on the XRP Ledger, which stands in stark contrast to many networks that rely on transaction fees to reward token holders.

• Ripple CTO's Defense: David Schwartz argued that removing validator fees could eliminate intermediaries in the system, allowing users to have independent control over their funds, and emphasized that low operational costs are key to future success.
• Critics' rebuttal: Fishy Catfish believes that blockchain networks need to charge small fees and return value to token holders to create a sustainable ecosystem, rather than relying solely on speculation. He argues that Schwartz's viewpoint is economically flawed.
• Income model comparison: Critics point out that Ripple relies on selling XRP to fund company operations and acquisitions, while projects like Ethereum, Solana, Chainlink, and Aave redirect protocol revenue directly back to token holders, which is the sustainable token economics.

XRP Usability Questioned: Stablecoin Adoption Rate as Key Evidence

Critics use the deployment of stablecoins to argue that XRP lacks sustained network appeal and genuine economic activity.

• Stablecoin custody differences: Data shows that the total circulation of RLUSD stablecoin is approximately 972.7 million USD, of which Ethereum holds 819.7 million USD (about 84%), while XRPL holds only 153 million USD (about 16%).
• Token Positioning: Catfish believes that XRP is not a true utility token for bank innovation, but rather a bank-themed meme coin driven by “confused retail investors.” He points out that investors often misinterpret Ripple's business partnerships as the actual utility of the XRP token.

David Schwartz's Critique of the Fee Model and the Ubiquity of Speculation

David Schwartz questioned the long-term sustainability of the fixed fee model, especially when transaction volumes decline.

• The paradox of cost-effectiveness: Schwartz suggested that if small fees decrease over time, then to whom should these fees be paid to achieve long-term sustainability?
• General speculation: Schwartz acknowledges that most cryptocurrencies are based on expectations of future demand rather than current utility, but Catfish insists that quality projects should tie token value to real economic growth and believes XRP has failed to meet this standard.

Market Dynamics and Investor Confusion

Critics point out that many XRP holders do not understand DeFi tools and on-chain metrics, and their investment decisions overly rely on influencer content and marketing.

• Trader Behavior: Despite the increase in wallet numbers, the lack of actual utility and developer participation is the main challenge it faces.
• Operating Advice: For investors seeking genuine revenue-driven token economics, beware of projects that mainly rely on narratives rather than protocol revenue sharing mechanisms.

Conclusion

The tension between the value model of XRP and the mainstream economics of decentralized networks is laid bare in the debate between Ripple's CTO and critics. The deployment data of RLUSD particularly reveals the pressure on XRPL to catch up in the institutional-level stablecoin ecosystem. In the future, XRP must prove its indispensable utility in mainstream finance and the Web3 ecosystem.