A digital asset expert, Jake Claver, has clarified that Ripple’s XRP escrow system prevents rapid price dilution. In a post on X, Claver noted that Ripple escrow releases are strategically "time-locked" to the first day of each month.
How Ripple’s time-locked XRP escrow controls supply
Notably, this suggests that Ripple cannot suddenly unlock more XRP outside this schedule. The idea is to keep circulation controlled and avoid price dips caused by excess assets in circulation. According to Claver, there are "no emergency releases possible" even though the demand for XRP spikes unexpectedly.
This mechanism prevents the ecosystem from flooding the market with extra XRP. This implies that in the short term, circulating supply cannot quickly adjust to sudden changes in demand because it is limited.
It also affects price movement because when supply is not flexible, and there is an increase in demand, prices can move more sharply. Notably, this occurs when XRP adoption soars from institutional buying, market sentiment or other bullish news on the market.
Ripple escrow releases are time-locked to first of each month, 1B XRP maximum. No emergency releases possible. Supply constraints make price shocks more severe.
— Jake Claver, QFOP (@beyond_broke) December 29, 2025
In essence, Claver opines that the XRP price could spike more aggressively than on other assets, where the blockchain can easily increase supply randomly to meet high demand. This suggests that XRP’s price reflects market realities and not interventions from Ripple.
It is worth mentioning, though, that while this reduces the risk of a sudden dump, it introduces a certain level of predictability. Investors can easily time price movement, particularly as it approaches the "unlock" period.
The XRP community has always been concerned about escrow releases. In August 2025, there were speculations that the firm’s escrow releases were at random. However, Ripple CTO David Schwartz clarified the misconception.
According to Schwartz, the releases occur regularly on the first of every month. The different date stamps occur because of ledger activity, which requires someone to submit a transaction to activate it.
Predictable escrow releases keep XRP community on edge
Meanwhile, in another development, Schwartz stunned the community in October, when he revealed that Ripple can sell off its rights to XRP locked in escrow.
He explained that although the assets locked in escrow cannot be circulated until the scheduled date, Ripple could sell its rights to receive the tokens in advance.
This suggests that although liquidity does not change, the rights to future assets can be reassigned or monetized within their discretion.
As the community looks forward to the next escrow release on Jan. 1, 2026, XRP is currently changing hands at $1.87, a 0.24% increase in the last 24 hours.
