Charles Hoskinson, the founder of Cardano (ADA), has publicly criticized Ripple's long-standing strategy of selling XRP to generate revenue. Speaking on Paul Barron's podcast, Hoskinson argued that Ripple's current model benefits the company but does little for XRP token holders. He proposed that Ripple should implement a buyback program, allocating 20% to 30% of its revenue to repurchase XRP tokens, which he believes would significantly enhance the token's market appeal and value proposition for holders.
Hoskinson pointed to Hyperliquid as an example of a successful buyback mechanism, noting that the project climbed from outside the top 30 to the top 10 by market capitalization largely due to its buyback program. He stated that while Ripple reinvests proceeds from XRP sales into the XRP Ledger ecosystem, this is not enough. The Cardano founder argued that Ripple has neither a financial nor a statutory incentive to share its wealth with token holders and does not expect voluntary action without regulatory pressure.
To illustrate his concerns, Hoskinson referenced Block One, which raised $4 billion for the EOS token in 2018 but later declared it had no fiduciary obligation to EOS holders, leaving the token community with nothing. He warned that the same dynamic could play out with XRP, potentially leading to community fragmentation if Ripple accumulates billions in hard assets while token holders receive no direct benefit.
Hoskinson's comments come as the Digital Asset Market Structure Clarity Act progresses through the U.S. Senate. If passed, this bill could establish clearer frameworks around token utility, revenue sharing, and issuer obligations, potentially creating legal pressure for companies like Ripple to connect their business model more directly to their tokens.
