XRP: Mining, Staking, & Ripple Validators

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Ripple XRP is one of our favorite tokens at Gasbox for a variety of reasons. However, one of the major challenges that constantly faces us is that, aside from token appreciation, there are few ways to make money holding the coin.

Ripple XRP tokens cannot be mined, staked, or even validated for profit.

If that’s all you wanted to know, you’re welcome, you can stop reading here.

If you are interested in the ‘deets’ and some alternate ways to maximize your XRP returns, keep reading…

Is it Possible to Mine Ripple (XRP)?

While there are many articles on the internet claiming it is possible to mine Ripple (XRP), it is just not true. These websites are extremely misleading and just trying to get traffic to their website by preying on good people looking for real answers.

You cannot mine ripple on a pc, you cannot mine ripple on a mac, you cannot mine ripple using ASICs… If you come across a website teaching you ‘how to mine XRP’ using these or any other method, run…

The best you can do is to ‘mine XRP’ is to mine another token such as Bitcoin or Ethereum and exchange it for XRP.

Can you Stake Ripple XRP?

What is Staking

Staking is a way of earning rewards for holding certain cryptocurrencies.

Token holders can stake their coins in ‘staking pools’ and earn interest on their coins for contributing to their proof-of-stake consensus.

Essentially, you earn money by contributing your coins to the network. Much like how banks, a long time ago, in a galaxy far, far away… used to pay interest on money kept in savings accounts.

How and where can I Stake my XRP?

As much as I hate to do this to you again…

You can’t.

Because Ripple uses a consensus algorithm, it cannot be staked, and any article claiming otherwise is again just trying to squeeze Google for some SEO juice and spreading misinformation.

It is possible, however, to earn interest on your XRP through companies like Nexo. These companies lend out your tokens as collateralized loans to other borrowers using their own currencies as security. They charge an interest rate, then pay you a share of the profit.

So, while it is not technically possible to stake your XRP, there are some options that are very similar.

At the time of this article, Nexo is paying 6% APY on Ripple XRP or 8% if you choose to get paid in their NEXO token. However, due to the SEC case, it is no longer an option for US Citizens on most platforms.

What about Ripple Validators?

What is a Ripple Validator?

A validator is a Ripple node that serves as a validation server. In other words, these nodes are built to use the agreement strategy or consensus mechanism.

There are two kinds of ripple nodes:

  • Stock Server which just tracks along with the network with a limited copy of the ledger.
  • Validators-Nodes which engage in the consensus algorithm.

Neither of these has any rewards, however, if a firm or a user is dependent on the XRP Ledger, it’s in their best interests to operate a validator and participate in the consensus process. The aim is to provide a trustworthy validator that helps to maintain the decentralization of the XRP Ledger.

Do Ripple validators get Paid?

Ripple avoids paying out XRP as a prize to validators since this might “influence their performance,” as they put it…

So no, Ripple validators don’t get paid.

The reality is, unless you are building products on the XRPL, or care deeply about the evolution of Ripple, there is no real incentive to run a Ripple Validator.

Should I Invest in XRP?

The primary reason to invest in XRP is for the upside appreciation of the token itself.

… since its inception, Ripple has focused primarily on developing strong ties with banks, and as a result, has been increasingly adopted by financial institutions and businesses around the world. The most common application of XRP is providing liquidity for banks that enable international money transfers at lightning speed with minimal fees.

Other reasons to invest include:

  • It is highly accessible
  • Not subject to inflation
  • Very low commission rates
  • A general concern for customer trust

At Gasbox, we personally use XRP and the XPRL to build products and services, and yes we even run an XRP validator that reaps no rewards 😉 … That said, seeing it work in real application on our own products gives us huge confidence in the future of Ripple. We also have strong personal convictions that it will be mass adopted by all the major financial institutions and just might serve as the primary Central Bank Digital Currency (CBDC) worldwide.

If you’re interested in investing in XRP you can do so by purchasing XRP tokens on Uphold. Likewise, if you are interested in the projects we are building here at Gasbox, you can join our investor waitlist and invest in XRP indirectly via our token Gasbox (MCF).

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