A governance vote has drastically reduced the cost of opening accounts and creating trust lines on the XRP Ledger (XRPL), marking a 90% decrease in fees as XRP continues its impressive multi-week rally.
“Together with other UNL Validators, we’ve voted to reduce the #XRPL Reserves,” validator @aesthetes_art announced in an X post. “It’s now 10x cheaper to start operating on the XRPL.”
As a result of the vote, the account reserve requirement dropped from 10 XRP to 1 XRP, while fees for creating trust lines or objects fell from 2 XRP to just 0.2 XRP.
What the Fee Reduction Means
The account reserve is the minimum XRP balance required to activate an address on the XRPL, ensuring it is operational for transactions. This reserve mechanism is in place to prevent spam by making the creation of multiple accounts costly.
Additionally, the base reserve is the fee associated with owning objects on the ledger. These objects can include escrows, payment channels, or transactional data stored within the XRPL network.
This reduction in fees coincides with a surge in account creation activity. Over 30,000 new accounts were activated on the XRPL on Monday, a massive spike compared to the usual under 2,000 weekly activations, according to network data.
XRP’s Meteoric Rise
XRP has seen its value skyrocket by over 400% in the past month amid a combination of favorable fundamentals and regulatory developments. The token recently reclaimed its position as the third-largest cryptocurrency by market capitalization and reached price levels not seen since early 2018.
These changes to XRPL’s fee structure, paired with XRP’s ongoing price momentum, could attract even more users and activity to the network in the coming weeks.
