XRP's tokenomics is unique and differs from many other cryptocurrencies. XRP has a clearly defined, finite supply and a mechanism that makes it deflationary.
Maximum Supply: A total of 100 billion XRP has been created, and no new coins will ever be issued. This creates a scarcity similar to gold.
Managed Release: Most of these 100 billion XRP initially belonged to Ripple and is gradually released to the market (or sold) through controlled quarterly sales. This ensures predictability.
Burning Mechanism: Each transaction on the XRP Ledger (XRPL) results in a small portion of XRP being burned (the transaction fee). This means that over time, the total amount of XRP in circulation slowly decreases, making the token deflationary.
Against Inflation: The deflationary mechanism distinguishes XRP from many fiat currencies that are subject to inflation, making it potentially more valuable in the long term, provided that the usage of the network increases.
XRP's unique tokenomics is designed to maintain the stability and value of the token as a global means of payment.