XRP Ledger To Challenge Ethereum With Fee Upgrade? Ripple CTO Weighs In

Nynu V Jamal
June 16, 2025
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
David Schwartz Exposes Fake XRP Airdrop

Highlights

  • Key Ripple figures discuss about contrasting fee models of EVM and Hooks.
  • David Schwartz proposes a fee management-focused upgrade for the XRPL to outdo Ethereum.
  • Schwartz proposed refunding excess fees based on either minimum required fees or median transaction fees.

Ripple CTO David Schwartz is sparking a new wave of innovation with his proposal to upgrade the XRP Ledger’s transaction fee management, setting the stage for a possible showdown with Ethereum. In response to growing concerns over XRPL’s transaction fees, David Schwartz proposes two innovative solutions, promising to streamline costs and provide refunds for unused fees.

Advertisement
Advertisement

Ripple CTO Proposes Transaction Fee Upgrades for XRP Ledger

In an open discussion on the X platform, Ripple CTO David Schwartz introduced proposals on innovative transaction fee upgrades for the XRP Ledger. His thread comes amid growing discussions about overpayment on the XRP Ledger (XRPL) in comparison to the Ethereum blockchain. He stated, “I like the idea of charging every transaction in the ledger the same fee level when possible, but prioritizing transactions based on the maximum fee they were willing to pay.”

David Schwartz’s Two Key Proposals

Notably, Schwartz proposed two major ideas to enhance the XRPL’s efficiency and fairness. His primary goal was to eliminate unnecessary overpayment. He noted, “Everyone overpays. That’s not ideal.”

Schwartz’s first proposal centers on dynamically calculating the minimum fee needed for transaction processing after consensus. Users who overpaid would then receive a rebate for the excess amount, promoting fair incentive alignment and rewarding honest fee bidding. The Ripple CTO wrote,

One idea is to compute the fee level required to get one more transaction into the ledger after the consensus transaction set is determined and rebate any fee above that level that any transaction tried to pay. You might have to tweak that a bit to make it not break consensus.

Secondly, he proposed calculating the median fee of all accepted transactions in each ledger and refunding users the difference between their paid fee and the median fee, effectively reducing overpayment. Although this method is more practical, it may lead to overpayment if users submit their highest acceptable bid. Both proposals prioritize improving user experience while maintaining performance standards.

These discussions come amid anticipations of the blockchain’s 2.5.0 version upgrade in June. The network also witnessed some developments last week, including the launch of Circle’s USDC on the Ledger.

Advertisement
Advertisement

Key Takeaways from the XRPL vs Ethereum Fee Debate

Significantly, Schwartz’s proposal emerged from insights into the contrasting fee models of EVM and Hooks. It is noteworthy that EVM (Ethereum Virtual Machine) and Hooks (used in XRPL) have distinct approaches to transaction fee calculation. This distinction was highlighted by XRPL Senior Software Engineer Mayukha Vadari, who stated that EVM refunds unused gas while XRPL’s Hooks charges based on the worst-case scenario compute.

The XRP Ledger’s current minimum transaction fee stands at 0.00001 XRP (10 drops) for standard transactions, with the possibility of temporary increases during periods of unusually high network load. Reportedly, all transaction fees are burned, including the excess amount beyond what’s actually needed. While this mechanism helps reduce XRP’s total supply, it also results in users often overpaying for transactions. Unlike Ethereum, which allows users to overestimate gas costs and receive refunds for unused amounts, the XRP Ledger locks in a fixed fee that doesn’t offer refunds.

Explaining the idea of “overpaying” for a hook, the XRPL engineer stated,

It’s not considered “overpaying” for a hook, it’s considered a static fee. And adding refundability for transaction fees would also be a major shift. I’m not involved with Xahau though so not my place to say.

In response to the community’s queries and Vadari’s explanation, XRPL dUNL validator VET suggested implementing a feature to refund unused fees to transactors. He promoted a more efficient feel model, following which David Schwartz introduced his proposal.

Amid this development, the XRP price has rebounded in the last 24 hours. CoinMarketCap data shows that the altcoin is up over 5% during this period, trading at around $2.28.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.