Ripple’s dollar-pegged stablecoin RLUSD is seeing a period of reduced supply, with millions of tokens permanently removed from distribution in a series of job burns tied to Ripple’s treasury activity. Blockchain trackers monitoring RLUSD activity show that several large burns have occurred recently, eliminating tens of millions of tokens from supply. The latest burn alone accounted for 25 million tokens in one go, but that’s the number it only tells part of the story.
Recent Burns Wipe Out 25 Million RLUSD
Recent transactions flagged by Ripple Stablecoin Tracker on X burned 25 million RLUSD in the RLUSD treasury, a key figure in what has been a multi-step reduction in the stablecoin’s circulating supply in recent days. Stablecoin burns permanently remove tokens from circulation by sending them to an unreachable address, making it difficult to recover or spend again. In the case of RLUSD, the transaction effectively removed 25 million tokens from the total supply. That alone would be remarkable, but many more burns preceded it.
Before the 25 million token burn, Ripple has already spent several million RLUSD on different activities. This burning is done on both the Ethereum blockchain and the XRP Ledger, which are the two blockchains that RLUSD operates on.
Ripple Stablecoin Tracker on X record the transaction where 8 million RLUSD were permanently removed from circulation. That innovation did not happen alone. Another one followed previous transactions that destroyed 3 million RLUSD, continuing the pattern of supply reductions associated with Ripple’s treasury activity.
In retrospect, the sequence is even more remarkable. Before these two burnings, the tracker has already flagged the burning of 15 million RLUSD, followed by another 15 million RLUSD being removed from the Ethereum blockchain. Prior to that, a separate transaction removed 10 million RLUSD from circulation on the XRP Ledger.
Why These Fires Keep Happening
The burn rate in recent days is not a red flag but a feature. RLUSD operates under a reserve-backed model where every token in circulation corresponds to a dollar held in a reserve. Ripple burns tokens to ensure the circulating supply never exceeds the base when holders spend their RLUSD.
Burning of this scale can only be a concern if it always exceeds the number of tokens created. That does it it does not seem so with RLUSD. Updates from the Ripple Stablecoin Tracker account show that the recent burn has been accompanied by even greater mining activity. Only a few days ago, RLUSD treasurer is made 3 million RLUSD, 6 million RLUSD, 29 million RLUSD, and 14.9 million RLUSD, all of which have entered and circulated on the Ethereum network.
RLUSD itself has continued to grow ever since its launch and has grown slightly in size, with the stablecoin now holding a market capitalization of over $1.56 billion.
The featured image was created with Dall.E, a chart from Tradingview.com
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