XRP (XRP) sustainability report

XRP Ledger is present on the following networks: Ripple.

The Ripple blockchain, notably the XRP Ledger (XRPL), operates using a distinct consensus mechanism known as the Ripple Protocol Consensus Algorithm (RPCA). This system fundamentally diverges from energy-intensive Proof of Work (PoW) and capital-intensive Proof of Stake (PoS) models, as it does not involve mining or staking. Instead, RPCA relies on a Federated Byzantine Agreement (FBA) model, emphasizing the role of trusted validators to achieve network consensus efficiently. Core to this mechanism are 'Validators' and their 'Unique Node Lists' (UNL). Validators are designated as trustworthy nodes responsible for validating transactions and proposing updates to the ledger. Each individual node within the network maintains its own Unique Node List, comprising a selection of other trusted validators. Consensus is reached when a supermajority of 80% of validators listed in a node's UNL collectively agree on the legitimacy of a transaction or a proposed block. This agreement threshold is critical for upholding high levels of security and ensuring the network's decentralized nature. The consensus process begins with a 'Proposal Phase,' where validators submit new transactions for inclusion in the ledger. This is followed by a 'Validation Phase,' during which validators cast votes on these proposed transactions by comparing them against their respective UNLs. Once the necessary 80% agreement is secured, the transactions proceed to 'Finalization.' In this conclusive stage, the agreed-upon transactions are permanently recorded into a new ledger, rendering them irreversible. The XRPL's design prioritizes rapid transaction ordering and validation, ensuring that transactions broadcast to the network are confirmed swiftly once the 80% validator agreement is met. This streamlined approach allows the network to process transactions efficiently, contributing to its reputation for speed and scalability without the environmental impact associated with traditional blockchain mining.

XRP Ledger is present on the following networks: Ripple.

The Ripple blockchain, specifically the XRP Ledger (XRPL), implements a unique incentive structure that markedly contrasts with traditional Proof of Work (PoW) and Proof of Stake (PoS) systems, which typically reward participants with newly minted tokens or a share of transaction fees. Instead, the XRPL's Ripple Protocol Consensus Algorithm (RPCA) operates without direct monetary compensation for its validators. Validators on the Ripple network are not incentivized through block rewards or staking rewards, as there is no mining or direct staking mechanism in place. Their primary incentive stems from the inherent utility and stability of the network itself. For instance, financial institutions acting as validators benefit significantly from the network's efficiency in facilitating fast, reliable, and low-cost cross-border payments, aligning their interests with the network's operational integrity and performance. The absence of mining also means the network avoids energy-intensive computations, which contributes to its fast transaction speeds and overall scalability. Regarding applicable fees, the Ripple blockchain charges minimal transaction fees, typically measured in fractions of an XRP, often referred to as 'drops,' for each operation. The fundamental purpose of these fees is not to reward validators but rather to act as a crucial anti-spam and anti-overload mechanism, safeguarding the network's stability and preventing malicious actors from saturating it with frivolous transactions. Furthermore, a distinctive 'burn mechanism' is integrated into the fee structure: a portion of every transaction fee is permanently removed from circulation. This deflationary process gradually reduces the total supply of XRP over time, which, in turn, can contribute to the long-term value stability and scarcity of the underlying digital asset. This holistic approach ensures network security and efficiency through intrinsic motivations and a unique fee model, rather than direct financial incentives for validators.

XRP Ledger is present on the following networks: Ripple.

The methodology for assessing the Ripple blockchain network's energy consumption, applicable to any crypto-asset operating on it, is founded on a 'bottom-up' approach. This method identifies the network's nodes as the primary contributors to its overall energy usage. The assumptions underpinning these calculations are derived from empirical data gathered through public information sources, open-source crawling tools, and proprietary in-house crawlers. A key factor in estimating the hardware deployed across the network is the minimum system requirements needed to run the client software. The energy consumption profiles of the specific hardware devices are meticulously measured in certified test laboratories to ensure accuracy. When calculating consumption, if available, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is utilized to accurately identify and scope all implementations of the asset being evaluated. The mappings provided by the Digital Token Identifier Foundation are updated regularly to maintain data currency. The information concerning the types of hardware used and the number of participants within the network is based on verifiable assumptions, which are diligently checked against empirical data. A general presumption of economic rationality among participants guides these estimations. Adhering to a precautionary principle, conservative estimates are consistently applied when there is any uncertainty, deliberately opting for higher projections to account for potential adverse impacts. To determine the energy footprint attributable to a specific crypto-asset on the Ripple network, the total energy consumption of the Ripple network is calculated first. Subsequently, a fraction of this network-wide consumption is apportioned to the individual crypto-asset, based on its measurable activity within the network.

XRP Ledger is present on the following networks: Ripple.

To ascertain the proportion of renewable energy utilized by the Ripple blockchain network, a multi-faceted methodology is employed. The initial step involves pinpointing the geographical locations of the network's nodes. This crucial geo-information is acquired through a combination of public information sites, sophisticated open-source crawlers, and advanced in-house developed crawling technologies. In instances where comprehensive geographical data for node distribution is not readily available, the methodology resorts to leveraging 'reference networks.' These reference networks are carefully chosen based on their comparability in terms of incentivization structures and consensus mechanisms to the Ripple network, ensuring that the estimates remain relevant and robust. Once the geo-information is established, it is then meticulously integrated with publicly accessible data from Our World in Data. This integration provides a comprehensive understanding of the energy mix at the identified node locations, allowing for an accurate assessment of renewable energy penetration. The calculation for 'energy intensity' is defined as the marginal energy cost incurred for processing a single additional transaction on the network. This metric provides insight into the energy efficiency of the network's operations on a per-transaction basis. The data sources underpinning this assessment of renewable energy include: Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Share of electricity generated by renewables - Ember and Energy Institute”. This comprehensive approach ensures that the analysis of renewable energy consumption is as accurate and transparent as possible, considering the dynamic nature of blockchain networks and global energy landscapes.

XRP Ledger is present on the following networks: Ripple.

The methodology for determining the Greenhouse Gas (GHG) Emissions associated with the Ripple blockchain network mirrors the rigorous approach used for energy consumption. It commences with the precise identification of the geographical locations of the network's nodes. This critical data is accumulated using a combination of public information sites, sophisticated open-source crawlers, and specialized in-house developed crawlers. Should direct geographical distribution data for the nodes be unavailable, the methodology strategically employs 'reference networks.' These reference networks are selected based on their operational similarities to the Ripple network, specifically in their incentivization structures and consensus mechanisms, to ensure the validity and relevance of the emission estimates. Upon acquisition, this geo-information is then integrated with extensive public data provided by Our World in Data, facilitating a detailed analysis of the carbon intensity of the electricity consumed at each node location. The 'GHG intensity' metric is calculated as the marginal emission generated by processing one additional transaction on the network. This metric offers a precise measure of the environmental impact per transaction, reflecting the network's carbon footprint. The primary data source supporting the calculation of GHG emissions is: Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Carbon intensity of electricity generation - Ember and Energy Institute”. This source is licensed under CC BY 4.0, ensuring transparency and accessibility of the underlying data. This systematic methodology aims to provide a robust and transparent assessment of the Ripple blockchain network's environmental impact in terms of GHG emissions.