The XRP Ledger will now be able to recall fraudulent funds in a bid to comply more with regulations, aiding its DApp innovators
Data from XRPScan confirms that the AMMClawback amendment is now officially live on the XRP Ledger (XRPL). This was after it received 91.43% consensus from validators. It ensures token issuers fully control their assets deposited in liquidity pools under specific conditions. With this new clawback feature, users on XRPL can recall their transactions even after initiating them.
In other words, a token could be returned to the sender after being sent to an account.
How the AMMClawback Feature Works
The XRPL AMMClawback is useful when an issuer discovers that the recipient of the tokens is connected to illicit activities.
The AMMClawback amendment is now live on the mainnet: https://t.co/GUKD32LdL9 https://t.co/57738PlM98 pic.twitter.com/HKrUhJb2MP
— XRPScan (@xrpscan) January 30, 2025
He can easily initiate a refund if he has previously enabled the feature. Based on the new development, tokens with the clawback feature can be used on the XRPL’s native Automated Market Maker (AMM).
Before now, Ripple’s USD-pegged stablecoin RLUSD could only be used on centralized exchanges with traditional order books. However, the integration and activation of this amendment make it possible to use the RLUSD on AMM pools. If RLUSD is ever involved in a fraudulent transaction, the blockchain payment company can easily claw it back with this feature.
Also, the XRP/RLUSD pool can provide XRPL with much-needed liquidity while boosting the Decentralized Finance (DeFi) ecosystem. Apart from the level of security that this feature guarantees users, it is also crucial for regulatory compliance.
Former Ripple executive Emi Yoshikawa expressed her excitement towards the amendment by saying, “Congrats to the XRPL community!”
More Amendments on XRP Ledger AMM
It is noteworthy that XRPL AMM has received some amendments within the short time of its launch.
Last year, the fixAMMv1_1 amendment was activated on the XRPL mainnet. This particular v1_1 amendment was an indication that the core focus of the AMM is hinged on fixing bugs or enhancing existing functionality within the AMM system.
Like in the case of the AMMClawback, fixAMMv1_1 was passed through the consensus process by validators on the XRPL. It ended up with 32 yes votes in support and 3 nays against it. The XRPL may welcome more amendments this year.
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