XRP Ledger Plan Narrows to Two Open Restricted-Token Proposals

Two of four proposed XRP Ledger changes under fixCleanup3_5_0 remain open after their authors closed the other proposals, narrowing a plan to tighten issuer controls over restricted tokens.

As of Oct. 30, one open proposal would require an account to receive issuer authorization for both assets in an automated market maker (AMM) pool before it could acquire the pool’s liquidity-provider (LP) token. The check would apply to LP tokens obtained through payments, offers, NFT offers and AMM bids. An LP token represents a claim on the assets held in a pool, so the proposal would apply issuer authorization to that claim as well.

The other open proposal would prevent payments from adding funds to an unauthorized trust line that already carries a balance. Both changes remain code proposals and have not been merged into the main software.

The two closed proposals addressed broader controls. One would have limited existing unauthorized IOU balances to transfers back to the issuer. Its author closed it Wednesday, Oct. 28, citing reviewer consensus that authorization governs who can hold or receive issued tokens, while freezes control sending. That distinction separates rules about holding or receiving a balance from rules about sending assets.

The other closed proposal would have required an authorization check across every transaction. Its author closed it Wednesday, Oct. 28, saying reviewers considered the broad rule largely redundant once the transaction-specific checks in the two remaining proposals were in place. The issuer-only return limit therefore remains in a closed proposal, rather than either of the open changes.

The XRP Ledger’s asfRequireAuth setting lets issuers require approval before other accounts can hold tokens they issue. The AMM proposal addresses how an account can acquire a claim backed by two pool assets, while the payment proposal focuses on further credits to trust lines that already have a balance.

Hussein “Vet” Zangana, director of community and product at the XRP Ledger Foundation, said: “The developer discussion is about what the protocol should guarantee, not a report of affected users.”

The remaining code would need to enter a software release before validators could vote on the amendment. Activation requires support from more than 80% of trusted validators for two consecutive weeks.