XRP Ledger (XRPL) AMM Amendment Suffers Major Setback

The newly introduced Automated Market Marker (AMM) proposed amendment on the XRP Ledger has suffered a serious setback as most of its supporters have pulled back their votes. 

fixAMMOverfloOffer Amendment Gets Reversed No Votes

According to data from XRP Ledger explorer XRPScan, the fixAMMOverflowOffer amendment proposal which has been up for votes for almost one week, lost a majority of its supporters. In addition to this setback, its 14-day countdown was reset, indicating that the voting process would be conducted all over again. This puts the amendment at a crucial point as most of its previous supporters may change their minds and decide to pick NO instead.

[BREAKING] AMM fix amendment fixAMMOverflowOffer lost majority and the 14 day countdown timer has been reset. pic.twitter.com/wcwD5eGcCx

— XRPScan (@xrpscan) April 1, 2024

Before this unexpected twist, the amendment received a total of 20 YES votes and 15 NAY votes. With this result, the fixAMMOverflowOffer amendment was gradually inching closer to the designated threshold of the proposal; 28/35. It is required to gain YES from about 80% of validators before it is passed. 

The default vote in the source code was previously set to YES pending when the final voting results are implemented but with the reset, it is now NO. 

The amendment registry shows that the proposal has received about 15 NO votes, leaving 20 other votes undecided. In all this, the large margin in the undecided votes suggests that the fixAMMOverflowOffer amendment still stands a fair chance.

XRP Ledger AMM and the First Amendment

It is worth noting that the XRPL fixAMMOverflowOffer amendment is aimed at fixing the improper handling of large synthetic AMM offers in the payment engine, a move that the XRP Ledger views as one of its most important updates to date. This proposal is the first amendment scheduled to be welcomed on the XRP Ledger AMM feature since it went live on the XRPL mainnet. 

No official explanation has been offered as to why voters likely pulled back their votes or if it was a glitch like the one that was recently encountered on some of the AMM pools on XRPL. 

When the so-called glitch happened, RippleX, the development arm of the blockchain-based digital payment protocol Ripple Labs had to step in to tackle the situation. Users were advised to halt deposits and redeem their liquidity provider tokens until the glitch was resolved.

With no explanation offered for the reverted votes, it implies this trend is a natural course.