In a recent communication on the social media platform X, Aaron McDonald, the visionary behind Futureverse and CEO of The Root Network, shed light on the backing mechanism of rXRP tokens on the Root Network. McDonald emphasized that all rXRP tokens are securely backed at a 1:1 ratio by XRP tokens on the XRP Ledger (XRPL). This clarification came in response to a query from user Thomas Silkjaer regarding the distribution of 360,000 tokens during The Root Network’s recent airdrop.
Silkjaer, seeking transparency, questioned how the network managed to distribute a substantial number of tokens when the XRPL bridge account had received only about 48,000 XRP. Furthermore, he inquired about The Root Network’s overall XRP balance, which stood at 680,000. McDonald addressed these concerns by explaining that the project underwent multiple iterations of bridging processes and account adjustments during the network’s developmental phase, especially in the pre-public launch period. McDonald assured users that every rXRP token is unequivocally supported by XRPL XRP held in the project’s vault accounts.
McDonald detailed ongoing efforts to consolidate accounts for enhanced transparency and easier tracking, citing these as reasons why the VORTEX, a key component, cannot currently be unwound. He committed to delivering a more formal report on the matter and reassured users that their funds are safeguarded through the “Secure Asset Fund for Users (SAFU)” model.
The Root Network, an amalgamation of a decentralized blockchain and the XRP Ledger DEX, operates on a dual-token system. It utilizes ROOT for security and governance, while XRP covers gas fees. In a recent airdrop campaign, the project distributed over 602,000 Vortex tokens, contained within which are 362,000 XRP and 4.7 million ROOT, as rewards for those securing The Root Network.
Project insiders shared that ROOT token holders can actively participate in the staking process, contributing to the network’s security. Through staking, users become eligible to receive Vortex tokens as rewards for their engagement and support.