Futureverse CEO Claims rXRP:XRP 1:1 Backing on The Root Network

  • According to Aaron McDonald, all rXRP tokens on the Root Network are backed 1:1 by XRP.
  • McDonald explained that the project is consolidating accounts to make it easier to track.
  • The Futureverse CEO promised to release a more formal report on the topic.

According to Aaron McDonald, the founder and CEO of Futureverse,  developer of The Root Network, all rXRP tokens on the Root Network are backed 1:1 by XRP tokens on the XRP Ledger (XRPL). He noted this in a post on X (formerly Twitter) while responding to a user who sought clarification over the recent airdrop by The Root Network.

The user, Thomas Silkjaer, asked how the network distributed 360,000 tokens when the XRPL bridge account had only ever received about 48,000 XRP. Silkjaer also asked how The Root Network could have a total XRP balance of 680,000.

In his response, McDonald explained that the project has had several iterations of bridging processes and accounts during the development of the network, especially during the pre-public launch phase. According to him, all rXRP tokens are backed 1:1 by XRPL XRP in the project’s vault accounts. 

McDonald explained that the project is an ongoing consolidation of accounts that would make it easier to track and more transparent, noting that it is one of the reasons the VORTEX can’t be unwound right now. He promised to release a more formal report on the topic and assured users that all funds are protected using the “Secure Asset Fund for Users (SAFU)” model.

The Root Network is a decentralized blockchain incorporated with the XRP Ledger DEX. It runs a dual-token system by using ROOT for security and governance, and XRP for gas fees. The project recently awarded over 602,000 Vortex tokens, with the Vortex containing 362,000 XRP and 4.7 million ROOT to those securing The Root Network as part of its airdrop campaign. 

According to those behind the project, anyone can use ROOT tokens to participate in the staking process that helps to secure the network. By staking, users become eligible to receive Vortex tokens as reward for participation. 

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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