Sidechains pay, XRPL won’t — the real tug-of-war over staking and XRP’s future
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of crypto in simple terms that won’t make your head spin. Today, we’re diving into the ongoing debate around staking and yields on the XRP Ledger (XRPL), exploring why the main chain stays incentive-free while sidechains are stepping in with tempting rewards. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant who’s always eager to learn more about blockchain without getting lost in the jargon. John, what’s the big deal with staking on XRPL—why can’t we just earn yields directly on it like with other cryptos?
Understanding XRPL and Its Unique Design
John: Great question, Lila. The XRP Ledger, or XRPL, was launched back on 2012-06-02, focusing on speedy payments with its Proof of Association consensus—think of it like a trusted group of friends verifying transactions without needing rewards to play nice. In the past, this no-incentive model helped it become a go-to for fast, low-cost cross-border transfers, handling over 5 billion transactions to date without the energy guzzling of proof-of-work systems.
Lila: Proof of Association? That sounds fancy—can you explain it like we’re talking about a neighborhood watch?
John: Absolutely! Imagine a neighborhood where everyone knows and trusts each other to report suspicious activity—no one’s getting paid, but the system works because of that mutual agreement. As of now, on 2025-11-20, XRPL still runs this way, prioritizing efficiency over yields, which sets it apart from staking-heavy chains like Ethereum. (And hey, if XRPL were a car, it’d be the reliable sedan, not the flashy sports model chasing high speeds with extra fuel.)
The Rise of Sidechains and Staking Opportunities
Lila: Okay, that makes sense. But if the main XRPL doesn’t offer staking, how are people earning yields with XRP?
John: That’s where sidechains come in—they’re like side roads branching off the main highway, allowing new features without messing with the core XRPL. For instance, a sidechain compatible with Ethereum smart contracts is set to launch in summer 2025, as announced by Ripple and Peersyst Technology on 2025-06-11, making it easier for developers to build DeFi apps. These sidechains are already enabling staking-like rewards, pulling users who want yields without leaving the XRP ecosystem.
Lila: Sidechains sound useful! Are there real examples of how they’re paying out?
John: You bet. Users are flocking to these for yields, as sidechains can offer incentives that the main XRPL avoids to keep things simple and secure. This tug-of-war is sparking debates on whether XRPL should evolve, but for now, sidechains are the bridge to DeFi excitement.
Current Yield Options like mXRP
John: Let’s get concrete with a hot example: mXRP, launched on 2025-09-22, is XRP’s first liquid staking token, offering up to 8% yield while keeping your assets usable in DeFi. According to reports from CoinDesk and CCN, it’s a way to stake XRP indirectly, with returns projected at 6%-8% based on strategy performance. As of 2025-11-20, this ties XRPL into broader liquidity flows without altering its core design.
Lila: Liquid staking? Is that like having your cake and eating it too?
John: Exactly! You lock up XRP but get mXRP tokens to trade or use elsewhere, earning yields in the background. It’s a clever workaround, and with XRP’s price at $2.04 USD today per CoinMarketCap, these options are attracting more holders. (If crypto were baking, mXRP would be the frosting that makes the plain cake irresistible.)
Discussions on Native Staking for XRPL
Lila: So, is there talk of adding staking right to the main XRPL?
John: Yes, Ripple engineers and the community are exploring it actively. On 2025-11-19, developer discussions highlighted early concepts for native staking, as covered by BeInCrypto, without needing to shift from its association-based consensus. This comes after proposals like one from XRP community figure Mickle earlier in 2025, aiming to boost DeFi growth on XRPL.
John: However, implementing it would require big changes, and nothing’s confirmed yet. Looking ahead, features like Hooks for on-chain logic and EVM-compatible sidechains could pave the way for automated yield strategies by late 2025.
Risks and Considerations
Lila: That sounds promising, but what about the downsides? Staking isn’t risk-free, right?
John: Spot on, Lila. While sidechain yields are appealing, they introduce risks like smart contract vulnerabilities or market volatility—remember, XRP’s price can swing, as seen in its 24-hour trading volume of over $5 billion today. Native staking debates also weigh security; XRPL’s incentive-free model has kept it stable since 2012, avoiding issues like slashing in proof-of-stake systems.
John: To stay safe, here’s a quick list of tips:
- Research platforms thoroughly—stick to trusted ones like those backed by Ripple.
- Diversify your holdings to mitigate volatility risks.
- Use hardware wallets for added security when staking.
- Keep an eye on regulatory updates, as crypto rules evolve.
Lila: Helpful list! So, balance the rewards with caution.
Looking Ahead: Future Developments
John: Absolutely. In the future, with the Ethereum-compatible sidechain launching around mid-2025, we might see deeper DeFi integration, including more staking options. Community pushes for native features, plus recent ETF launches like Canary Capital’s on 2025-11-19, could accelerate XRPL’s evolution. Price predictions from sources like CoinDCX suggest XRP consolidating around $2.20-$2.30 by November 2025 end, fueled by these advancements.
Lila: Exciting times! Will this make XRP more competitive with big players like Ethereum?
John: It could, by blending XRPL’s speed with yield opportunities. But remember, it’s all about thoughtful growth without losing what makes XRPL unique.
John: Wrapping this up, the staking debate shows XRPL’s strength in adapting via sidechains while preserving its core. It’s a reminder that crypto evolves, offering new ways to earn without forcing big changes. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—key takeaway: XRPL stays efficient, but sidechains open doors to yields. Beginners, start small and learn as you go!
This article was created using the original article below and verified real-time sources:
- Sidechains pay, XRPL won’t — the real tug-of-war over staking and XRP’s future
- Meet mXRP: XRP’s First Liquid Staking Token With Up to 8% Yield
- Could Staking Become Part of the XRP Ledger’s Future?
- XRP price today, XRP to USD live price, marketcap and chart | CoinMarketCap
- XRP Ledger will be compatible with Ethereum smart contracts via sidechain launch summer 2025