A fresh debate is brewing after the founder of Cardano suggested that Ripple explore an XRP buyback model. Speaking in a recent interview, Charles Hoskinson argued that XRP could become far more attractive if Ripple used a portion of its revenue to actively buy back tokens from the market. The idea has quickly sparked discussion over its potential impact on demand and market dynamics.
Ripple Buybacks: A Potential Shift in XRP Economics
During the interview with Paul Barron, the host relayed a viewer question on what Ripple might do to boost XRP’s utility if the much-anticipated Clarity Act becomes law. The question raised whether Ripple would take a passive approach or roll out more aggressive measures—such as XRP buybacks or even revenue-sharing staking—to enhance the token’s appeal.
Responding, Hoskinson said he does not expect Ripple to adopt a buyback model. Instead, he argued that Ripple will likely continue selling XRP, generating substantial revenue that is then used to acquire hard assets at the corporate level—assets he claims do not directly benefit XRP holders.
The Cardano creator further suggested that this reflects a long-standing pattern in Ripple’s strategy over the past decade, in which XRP sales have funded internal growth and initiatives such as the RLUSD stablecoin, rather than being redistributed to token holders.
Why Hoskinson Sees Buybacks as a Possible XRP Catalyst
Barron noted during the discussion that Ripple already reinvests proceeds from XRP sales back into the XRP Ledger ecosystem, suggesting this could still constitute meaningful support for the broader network. Charles Hoskinson acknowledged this point, but argued it falls short of what he considers a stronger alignment with token holders’ interests. He maintained that Ripple should more directly link its profits to XRP through a formal buyback mechanism.
 
To illustrate his theory, Hoskinson cited Hyperliquid, claiming it has successfully used buybacks to boost its token’s value and investor appeal. He further suggested that if Ripple allocated around 20% to 30% of its earnings toward XRP buybacks, it could significantly strengthen the token’s market perception—though he argued the company currently has neither the financial obligation nor legal requirement to distribute value back to holders.
He also drew a comparison with Block.one and EOS, noting that the company raised a staggering $4 billion in its token sale but later stated it had no fiduciary duty to EOS holders.
Notably, Ripple reportedly initiated a share buyback program earlier this year, valuing the firm at around $50 billion. At the time, reports indicated the company planned to repurchase up to $750 million in shares from investors and employees through a tender offer expected to run into April, signaling continued efforts to return value within its corporate structure.
XRP is down about 2% on the day as of this writing, recently trading at $1.39. Despite being the fourth-largest cryptocurrency by market capitalization, it remains roughly 62% below its all-time high of $3.65 set in July 2025.
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