Ripple recently announced the creation of a $250 million ‘Creator Fund,’ which would look into new applications for non-fungible tokens (NFTs) on the XRP Ledger (XRPL).
With the help of Mintable and mintNFT, as well as brand design agency VSA Partners and NFT marketplaces Mintable and mint, the massive fund will provide financial, technical and creative support for creators, brands, and marketplaces.
“The fund will target creators, brands, and marketplaces to explore new use cases for NFTs on the XRPL,” Ripple said.
XRPL, an open-source, decentralized blockchain that supports asset tokenization, including NFTs, has a built-in decentralized exchange (DEX) that allows for low-cost settlement and royalties.
Its consensus mechanism powers low-cost transactions compared to other blockchains’ high fees. The XRP Ledger is carbon-neutral and up to 120,000x more efficient than leading proof-of-work blockchains, allowing developers to run highly sustainable NFT apps and marketplaces.
“Many creators are still hesitant to engage with NFTs because of technical concerns about NFT platforms or fear that their NFTs will not gain traction,” the company claims.
Ripple touched on some of the major NFT pain points and creator challenges that the $250 million ‘Creator Fund’ aims to alleviate as the announcement continued to explain how “developers can also be turned off by clunky user experiences, high transaction fees, and environmental impact concerns with minting on many other platforms.”
“In the end, we think NFTs embody the promise of tokenization and constitute a tipping point for widespread use. “We’re thrilled to release additional usefulness for NFTs and drive the wider transition to tokenization,” the firm said in its statement, which opened the creator application process.
Effect on XRP Price
The news seems to have had little impact on the XRP price.
The cryptocurrency, now selling at about $0.9, has only gained 1.22 percent in the last 24 hours. Bhutan’s central bank has partnered with Ripple to test a central bank digital currency (CBDC). Meanwhile, the firm is preparing to go to trial against the Securities and Exchange Commission.