XRP Ledger closes loophole that could let token burners mint new supply

The XRP Ledger has activated the fixCleanup3_4_0 amendment to close a security loophole in its permission delegation system.

Previously, an account given permission to burn tokens could also create new tokens under certain conditions. The fix blocks this unless the account also has permission to mint tokens.

The amendment also introduced fixes across several network features. These included Single Asset Vaults, lending, automated market makers (AMMs), the permissioned DEX, trust lines, NFTs, Multi-Purpose Tokens (MPTs), NFTs and escrow. Other fixes covered sponsorship, transaction signing, and permission delegation.

Why are these fixes required in the first place?

These fixes are mainly designed to address technical issues involving asset calculations, token transfers, liquidity pool operations, account permissions, and reserve requirements. For example, the AMM fix would now prevent liquidity providers from losing their pool tokens due to rounding errors during certain clawback operations.

Similarly, improvements to lending and vault operations would now result in accurate accounting and asset management. The update also boosts MPT transaction validation and resolves issues that could cause NFT offers to fail. All in all, the amendment aims to improve the reliability, security, and functionality of the XRP Ledger’s existing financial infrastructure. 

That said, its activation followed two weeks of uninterrupted validator support, as XRPL amendments required more than 80% approval from trusted validators.

XRP Ledger market footprint

This comes as the XRP Ledger ranks ninth among networks in the RWA League Table, with $644.6 million in distributed tokenized assets, representing a 29.20% increase over the past month.

This followed a recent report from AMBCrypto, which indicated that XRPL ranked 10th in tokenized assets, with $642.5 million just a week ago.

Meanwhile, Santiment’s data for XRP Ledger suggests that its Total Open Interest fell from approximately $1.3 billion to below $1 billion towards the end of October. However, it subsequently witnessed a sharp recovery, reaching approximately $1.15 billion at press time.

At the same time, the Stablecoin Supply Ratio stood at 31.31 at the time of writing, marking a decline from around 34.5 to below 30 before recovering. 

Final Summary

• The amendment came in with a series of fixes across ten areas of the network.
• This came in after two weeks of uninterrupted validator support.