XRP Validator Opposes Lower Reserve Requirements for Account Activation

XRP Ledger validator Hussein Zangana, aka Vet, has pushed back against calls to reduce XRPL reserve requirements. 

He argued that network security should come before making account creation cheaper. Zangana said he would not support lower reserves unless it can be proven that the network would maintain the same protection against spam and denial-of-service attacks.

Validator Says Reserves Are Key to XRPL Security

In a post on X, Vet explained that XRPL reserves were created to protect the network’s storage and memory resources from spam and distributed denial-of-service (DDoS) attacks.

He noted that, in 2012, creating an account originally required a 1,000 XRP reserve. The requirement was later reduced to 200 XRP in early 2013. Since then, validators have gradually lowered reserves through validator votes rather than protocol changes.

Today, opening an XRP Ledger account requires a 1 XRP base reserve. Users holding assets such as RLUSD, USDC, or up to 32 NFTs must also pay an additional 0.2 XRP owner reserve for each object.

Vet said he previously supported lower reserves because XRP’s price had risen over time, while server hardware had become much more powerful than it was a decade ago.

However, he argued that storage and memory are still valuable resources. He added that growing AI workloads are increasing infrastructure costs.

Lower Reserves May Not Drive Adoption, Validator Argues

Vet also questioned whether reducing reserve requirements would significantly improve XRPL adoption.

He said users need to hold some amount of native cryptocurrency to use almost every blockchain. Because of this, he believes a 1 XRP reserve is unlikely to be a major barrier for new users.

Instead, Vet said the XRPL ecosystem should focus on attracting developers, building useful products, and delivering secure protocol upgrades that support long-term growth.

Sponsored Fees Upgrade Expected Soon

Vet’s comments come ahead of the expected rollout of XLS-68, a proposed feature that would introduce sponsored fees and reserves. He said the upgrade could arrive in about two weeks.

While the feature may improve the user experience, Vet argued that it would not solve what he believes many supporters of lower reserves are actually seeking: network subsidies for businesses.

He also rejected proposals to increase transaction fees to compensate for lower reserve requirements. Vet said he would only change his position if reduced reserves could provide the same level of network protection as the current system.