From one of my subscribers from my post “Do You Follow Crowds”:

Thanks Doug, Words of encouragement are always appreciated. I am still trying to fully wrap my head around how this tool works within finance and what uses it has that haven’t been tripped over yet. How does its design of decay with every transaction play into this?

The burn ratio of XRP per transaction is very low, with fees typically set at a fraction of 0.00001 XRP per transaction. This means that each transaction burns this small amount of XRP, effectively reducing the total supply gradually.

Key Details About XRP Burn Rate

• Burn Amount: Each transaction burns approximately 0.00001 XRP.

• Total XRP Burned: Since the inception of the XRP Ledger, around 14 million XRP have been burned, which accounts for only 0.014% of the total supply.

• Daily Burn Rates: Although some days may see fluctuations, in early February 2026, for instance, there was a notable increase in daily burn rates due to rising network activity, with up to 939 XRP burned in one day.

Implications of the Burn Rate

• Market Effect: The low burn rate suggests that while the total supply decreases, it does so at a very slow pace, which is primarily intended to deter spam transactions on the network.

• Institutional Use: Many institutions using the XRP Ledger prefer to settle transactions in stablecoins, as XRP burns are minimal and generally only cover transaction fees.

This structure ensures that XRP is not artificially scarce but remains functional and efficient for everyday transactions.