Ripple CTO Questions Evernode’s New Token Plan for XRPL, Warns of Network Fee Hikes

• Evernode proposes adding Hooks and a new token, Codii, to enable programmability on XRPL.
• Ripple CTO David Schwartz questions the need for Codii, citing complexity without clear benefits.
• Schwartz raises concerns about increased transaction fees across the network due to higher demand on resources.

Evernode co-founder Scott Chamberlain recently proposed a new system to bring programmability to the XRP Ledger (XRPL), sparking debate over potential fee increases. His proposal introduces Hooks, smart contract-like functions, and a new token called Codii to make executing these Hooks affordable.

Chamberlain explained that Evernode, a decentralized hosting platform, already uses four Hooks on the Xahau sidechain to manage reward distribution, host registration, reputation systems, and governance. However, to bring Evernode fully onto XRPL’s mainnet, Chamberlain suggested that Codii be introduced as a token specifically for paying Hook-related fees. 

Codii would be minted by locking up XRP and burned to fund Hook executions, while XRP would continue to handle standard transaction fees.

Ripple CTO Pushes Back on Complexity

Ripple CTO David Schwartz responded, arguing that Chamberlain’s approach was overly complicated. He questioned the need for a new token like Codii when XRP could be used for all fees, simplifying the system.

“This seems way overcomplicated for no benefit,” Schwartz remarked, noting that the real challenge would be resource demand. He highlighted that adding programmability features like Hooks would increase the demand on XRPL’s finite resources, likely pushing transaction fees higher for all users, not just those utilizing Hooks.

This seems way overcomplicated for no benefit. What advantage does this have over just burning XRP for all transaction fees?

— David “JoelKatz” Schwartz (@JoelKatz)
September 28, 2024

Khaled Elawadi, an XRP community member, raised further concerns, asking whether higher network fees would affect everyone or just those using Hooks. Schwartz confirmed that more demand on execution resources would lead to overall fee increases. He noted that while the network has some capacity for growth, higher demand would inevitably lead to higher prices.

Elawadi also suggested implementing a tiered fee system, where different types of transactions—like basic transfers, Automated Market Maker (AMM) swaps, and Hook executions—would have different fees based on their resource use. While Schwartz acknowledged the idea, he reiterated that overall demand would still drive up fees across the board.

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