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Hello this is Matt on the moon Lambo Channel The xrp Ledger continues to Evolve and there's a new Amendment which If passed will result in an opportunity For anybody within our ecosystem to have Passive income earning on The xrp Ledger Look at the headline here from FX Street Xrp Ledger prepares for upgrade to allow Token holders to earn income on chain so I'll give you all the latest here and Also there's a separate Amendment uh the Clawback amendment which actually um has Met the threshold for approval which Means that since that happened which was Earlier today from this moment as long As this threshold is sustained then it Will go live in two weeks so I'll give You the specifics on that as well but uh Before going further I do want to be Clear I do not have a financial Background of any kind I am not offering Financial advice and you definitely Should not buy or sell anything because Of anything I say or right I'm just an Enthusiast who enjoys making YouTube Videos about crypto related topics but Just as a hobby and just for fun all Right so this one's exciting this one's Very cool so if this gets approved we're Talking about the automated Market maker Amendment if this gets approved then Anybody uh within the ecosystem can Provide liquidity and actually have a Passive income earning on The xrp Ledger
Even though there isn't any smart Contract functionality on layer one That's not required for this actually um So let's get into some of this uh piece Reads as follows The xrp Ledger is Preparing for upgrade that will Introduce an automated Market maker or Amm for short Into The Ledger this amm Will act as an opportunity for xrp Holders to earn onchain income by Becoming liquidity providers the Altcoins validators are currently voting On The Proposal and data shows that the Consensus is 60% and I'll just pause Note it's actually higher so I'm going To circle back around to some of that Fact I'll get you the latest uh it's a Little bit higher right now but that That's what it was at the time they Published this anyway piece continues The xrp Ledger is preparing for an Amendment to its blockchain that will Introduce a built-in automated Market Maker uh trading platform into The Ledger the amm allows for crypto trading Using liquidity pools in a Permissionless manner the proposal has Gained support from validators since its Introduction according to Panos mecis Founder of anoto Finance 20 validators Have approved the XLS 30d Amendment the Consensus is 62.8% according to data from xrp scan And again like I said I will Circle back
Around to that uh automated market Makers eliminate the need for order Books thereby reducing both the delay And transaction costs the amendment will Offer Traders the opportunity to trade With the liquidity pool thus making Liquidity available irrespective of Market conditions yeah and so it's worth Noting here that what we're effectively Talking about is is pairing up anything That's tokenized on the xrp Ledger Because as I'm sure most of you aware to This point The xrp Ledger does have the World's first ever built-in Decentralized exchange and so anybody Can issue uh whatever asset they want on The Ledger but what you'll find is that Most of these coins are not particularly Liquid xrp sufficiently liquid I mean It's well it's number six in market cap That's not going to surprise you to hear That uh but then there are a lot of Other coins that that frankly aren't and So um this would go a long way to Ensuring that there is sufficient Liquidity for any transaction and it's a Positive for anybody that does choose to Jump on board um it's just an Opportunity because again it's it's Pretty hands-off from what what I Understand to this particular point the Way that it's designed it it it is an Actual passive income and so um here you Have a post from uh Panos who you know I
Would I think he's one of the more Knowledgeable guys within our xrp Community here and he's published all Sorts of stuff including blogs and Um just yesterday he posted the Following an automated Market maker is Like a self-running stall at a market That always has items to trade the price Of items isn't set by any one person but Is determined by how much of each item Is available if lots of people want to Buy a particular item and start trading Their items for it the amm adjusts the Price so that item becomes more Expensive if people want to get rid of An item and it starts piling up the amm Makes it cheaper this way the amm keeps The trading going by balancing supply And demand automatically without anyone Having to manually set the Prices and um and then I came across This which I think is a pretty cool way Of of thinking about this conceptually Um there's a post from Ripple employee Neil Harner he's the senior staff Software engineer at Ripple working on Odl and um he wrote similar ilar to my Amm vending machine example which he Posted actually this past August pitch Idea amm physical vending machines Insert money dispense candy bar price Goes up insert a candy bar dispense Money minus fee price goes down operator Never has to refill machine because
Arbitragers keep it stocked and so Basically you can see and that's a Pretty good way to kind of conceptualize This it it does come down to to supply And demand of course that that part of It is that simple um it's just that it's The case here that with this anybody can Participate and to participate and it is Automated um and then there was also This there's this long I'm actually not Going to go through this whole thing I Actually thought about it but I was like This is probably two into the weeds for This particular video but there is this This thread from Panos dating back to August 30th last year and it's it's it Is fantastic um it does get a little bit More into the weeds like I said than I Think we should get to in this Particular video and it's it's very long Uh but I reread I remember reading it Back then at the time and I reread it This morning and there were two posts From this thread that I wanted to Highlight uh because it has to do Specifically with uh what this means Assuming this does get approved what it Would mean uh for anybody uh that's a Holder of xrp and so panis wrote The Following the introduction of liquidity Pools was a game changer for the entire Decentralized Finance Market these tools Seek to address the issue of by Incentivizing users to provide liquidity
In exchange for a share of the trading Fees and so that's It you put up your Xrp and you get a share of that the Actual trading fees and there's another One like I said uh here yeah check this Out you wrote remember the higher the Trading activity the more money you make From fees as a liquidity provider and in Hype SL fomo periods with big price Swings especially price pumps the Trading volume goes crazy this means Tons of money for liquidity providers so This will be interesting now um I might Consider giving this a world because I Think it is one of those things where in Order to understand exactly how it works It's probably easiest just to jump in It's the same approach I had to when I Jumped into crypto in 2017 it was kind Of on a whim but I was like well I Haven't really done research but I'll Just put in a little bit of money so I Can see what it's like to get on the Cryptocurrency exchange make a couple Smaller purchases and go from there so I'm thinking um it would be interesting To give this a whirl perhaps um but Still I'm very strict about the way that I invest and so for me personally uh Almost all of my xrp is going to uh just Just remain in huddle mode in fact if Anything if I do want to futs around With this thing I I might play around
With the idea of actually purchasing uh New xrp specifically for this and if I Do I'll be happy to talk about that in The future but I I think in order just To see how it functions like I said it's Just it's one of those things I think It's just going to be easier if you just Kind of jump in and see how it works and See if it's something that you Like um now as far as how close we are To getting this thing approved uh well Here's xrp scan and you can see that There are 23 yays of so that's 23 yes Votes and 12 Nays 12 that's 12 no votes Um and by the way the default vote when It comes to new amendments is nay so you Have to actively you have to proactively Go in and change it to yay so it doesn't Mean that These that many uh entities had decided No we don't want this it may just be the Case that they're still thinking about It or they haven't done a sufficient Analysis yet but they still could uh we Do need to get to a total of 29 because In order to get an amendment uh passed You have to have 80% plus one that That's what it has to be you have to Have 80% approval plus one more and and Then that has to be sustained for for Two weeks so assuming we do get six more Than where we are at now it would be two Weeks from that point which does mean in The coming weeks should we get to that
Point like we it's totally reasonable to Think that we might have this thing Actually active just within the next few Weeks we'll see how long it takes but it Does seem to be broadly supportive it's Just it is a high bar and that's by Design you know you don't want to make It easy to be changing then very nature Of blockchains right when people are Relying on for various things it's Supposed to be hard to to to to make Core changes uh to to blockchains is Certainly The xrp Ledger here But uh still it seems like this is Something that actually is probably Going to get approv you know I don't Want to jinx it here but uh there's a Pretty good chance that this thing is Actually going to get approved which I Think will be cool as hell so uh we'll We'll be watching for that um and then There was also this uh xrp Ledger Clawback this this bad boy uh it it has Hit the threshold only needed 29 uh yes Votes we're at 30 now uh so now this it This morning now that needs to be Sustained for 2 weeks from that point And as long as we don't fall below that Threshold of 80% plus one additionals Meaning 29 yeses then uh then it's it's Going to go live so what's the deal with This well here you can go and uh get a Good description of this from xrpl Thator it's very easy to understand
Actually uh automated Market maker Definitely more complex than the Clawback but check this out and I Remember by the way when this clawback Discussion started whenever it was a Year ago I can't remember exactly when Uh discussion on this started moving Forward there was concern because uh You're talking about transactions being Rolled back effectively and people were Having concern that this would make it Possible to roll back xrp Ledger Transactions that it would make The xrp Ledger less trustworthy and that could Be further from the truth there there is No call back xrp transactions period And There's actually really good reason for This and it's optional so check this out For regulatory purposes some issuers Must have the ability to recover issued Tokens after they are distributed to Accounts for example if an issuer were To discover that tokens were sent to an Account sanctioned for illegal activity The issuer could recover or claw back The funds so there you go and then they Note here uh clawback is disabled by Default to use clawback you must set it To and then it gets a little bit Protective not not necessar to go Further than that for the for the Purposes of this particular video but Just know that if you are creating a Token on The xrp Ledger by default that
Is turned off if you want to turn it on You can and that would be publicly known So it's not a problem there would be Certain applications where you'd want That functionality and perhaps a whole Bunch others where you don't it's just Additional functionality which can bring More developer activity to the xrp Letter so all this is good stuff that's Going to help with the long-term Viability of xrp and The xrp Ledger we Want this stuff okay pretty cool right Let me know what you guys think about it But I think this pretty exciting these Are some cool developments here I'm Really hoping that the automated Market Maker does get approved and my foref fun Guess is that it will at some point We'll just see how long it takes though I am not a financial adviser you should Not be sell anything because of anything I say or right that would be a very very Very bad idea until next time to the Moon Lambo
