Loading article…
XRP Ledger co‑creator David Schwartz proposes a reservation system costing double fees to stop front‑running, a $1.4 M loss estimate, and requires 80%
A proposed protocol change would let XRP Ledger users reserve a priority slot for a trade, costing at least twice the normal fee, to make front‑running and sandwich attacks impossible once the slot is locked [1].
| At a glance | |
|---|---|
| Proposal | ReservedTxns reservation system |
| Fee increase | ≥ 2 × standard transaction fee |
| Slot horizon | Up to 16 ledgers ahead |
| Approval needed | 80 % of validators for two weeks |
The design adds two new ledger objects. ReservedTxns stores a target ledger number and up to 32 transaction IDs; when that ledger closes, the listed transactions are processed first, then the object is deleted. TxnReserve lets a user claim a slot by submitting a reservation transaction that includes a fee at least double the base fee and a target ledger no more than 16 ledgers away [2]. The fee rises as slots fill, deterring any single actor from hoarding capacity. By the time the reserved transaction is revealed, other participants cannot insert a preceding order, eliminating the window that bots exploit on the public queue.
Front‑running on the XRP Ledger is not impossible; its own documentation describes the transaction order as “hard to game” but admits attacks can succeed. A 2023 study estimated that bots could have extracted roughly $1.4 million from traders over two months [1]. The issue resurfaced after XRPresso highlighted that validators and well‑connected nodes can see pending transactions before the ledger finalises, enabling sandwich attacks especially on the network’s growing AMM pools—now over 27,500 [1]. As institutional inflows into XRP products increase, the potential profit from such attacks scales, prompting Schwartz’s proposal as a pre‑emptive safeguard.
The reservation mechanism is still a proposal; it must be formalised as a network amendment and receive a super‑majority vote from validators—at least 80 % support for two consecutive weeks—before activation [2]. Until such a vote passes and code is deployed, the feature remains a discussion point rather than a live protection.
If adopted, the ReservedTxns mechanism could close a known vulnerability just as the XRP Ledger’s trading activity expands, reinforcing its claim of institutional‑grade security while adding a cost layer for users seeking guaranteed execution order. The open question is whether the validator community will rally behind the change before the next wave of high‑volume trading arrives.
Coverage is mostly measured — 10 of 10 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 4, 2026 · How we report
Government regulators have officially classified XRP as a commodity, not a security.
Seven spot XRP ETFs have launched, with total investor inflows exceeding $1 billion.
The classification removes regulatory uncertainty, making it easier for Wall Street firms to create and offer investment products like ETFs that appeal to institutional investors.
XRP’s ledger is noted for providing a cheaper and faster method for banks to conduct cross‑border transactions.
XRP has continued to face difficulty breaking above the $2 price level in 2026 despite the regulatory clarity.