Founder of Europe’s First Crypto Fund Criticizes XRP’s Centralization – Here’s Why

Justin Bons, founder of Cyber Capital, Europe's oldest cryptocurrency fund, has criticized the XRP Ledger (XRPL) as centralized and permissioned, disputing Ripple’s claims of decentralization.

He accuses the XRP Foundation of misleading investors and exercising full control over the network.

Bons argues that XRPL’s reliance on Unique Node Lists (UNLs) resembles a Proof of Authority (PoA) system rather than trustless mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).

He highlights issues with decentralization, stating that network participation requires the foundation’s permission and that default UNLs, controlled by the foundation, create de facto centralization. Bons also criticizes the absence of incentives for validators, contrasting XRPL’s design with PoW and PoS systems.

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The debate around XRPL’s structure is further intensified by Bons’ claims about its lack of trustlessness. He asserts that while users can technically choose their UNLs, a 90% overlap with the network is required to avoid disconnection, which effectively forces reliance on the foundation’s list. This, combined with the ability to alter validator lists instantly, gives the foundation sweeping control over network operations, Bons claims.

He further points to XRPL’s initial coin distribution, claiming it was unfair due to a pre-mine of 99.8%, and suggests adopting a PoS mechanism to enhance decentralization. Despite community backlash, Bons calls for reforms to ensure transparency and trust in XRPL’s structure.

Kosta Gushterov