Standardized Reporting of Private Payment Channels with daily volume in excess of $1,000,000

[Sk3wd33]

I propose all Private Payment Channels be required to report all transactions to the XRPL at a minimum of once every 24 hours.

Indefinite Private Payment Channels stand to kill this ecosystem for retail investors. Do not allow this to happen.

Retail is what financed Ripple's fight against the aggressors, do not allow us to be locked out of the liquidity and volume.

Any and all input would be greatly appreciated.

God bless and good luck!

[pkcs8]

What's a Private Payment Channel?

[Sk3wd33]

Check it out.

https://x.com/MrBeastRL1/status/1909607500153835872

https://flash-payments.com/resources/the-difference-between-ripple-and-xrp/?utm_source=chatgpt.com

[Sk3wd33]

They allow for scalability. The only problem is the indefinite time limits they are allowed to remain open.

They are off chain transactions that harvest the power of the XRPL but don't pay the price. As it stands right now, there is no requirement for the institutions to bring their money onto the ledger (consume XRP). It renders XRP near useless as Stablecoins take over and transactional costs are only accounted for once a year, for example.

[Sk3wd33]

Any thoughts?

[Sk3wd33]

Amendment to XRP Ledger Protocol

Title:

Mandatory Reporting for High-Volume Private Payment Channels

Introduction:

The purpose of this amendment is to enhance the transparency and accountability of Private Payment Channels on the XRP Ledger. This amendment mandates that all Private Payment Channels with a daily transaction volume exceeding $1,000,000 must report their transactions to the XRP Ledger at least once every 12 hours.

Amendment Details:

Section 1: Definitions

1. Private Payment Channel: A payment channel on the XRP Ledger that is not publicly visible and is used for transactions between private parties.
2. High-Volume Channel: Any Private Payment Channel that processes transactions with a cumulative daily volume exceeding $1,000,000 USD.

Section 2: Reporting Requirements

1. All High-Volume Channels must report their transactions to the XRP Ledger at least once every 12 hours.
2. The reported transactions must include the following details:
   • Transaction ID
   • Timestamp
   • Amount
   • Sender Address
   • Receiver Address

Section 3: Compliance and Enforcement

1. Non-compliance with this amendment will result in penalties including, but not limited to:
   • Temporary suspension of the Private Payment Channel
   • Fines proportional to the volume of non-reported transactions
2. The XRP Ledger Authority will be responsible for monitoring compliance and enforcing penalties.

Section 4: Implementation

1. This amendment will be implemented 30 days after the approval date.
2. The XRP Ledger Authority will provide tools and guidelines to facilitate the reporting process.

Risks:

1. Privacy Concerns: There may be concerns about the privacy of transactions as details of high-volume private payment channels will be reported.
2. Operational Burden: Entities operating high-volume private payment channels may face operational challenges in complying with the reporting requirements.
3. Potential for Increased Costs: Implementing the necessary infrastructure to comply with the reporting requirements may lead to increased costs for operators of high-volume channels.

Benefits:

1. Enhanced Transparency: The amendment will increase the transparency of high-volume transactions, which will help in monitoring and preventing fraudulent activities.
2. Improved Accountability: By mandating regular reporting, the amendment will ensure that high-volume private payment channels operate with a higher level of accountability.
3. Strengthened Network Integrity: Increased transparency and accountability will contribute to the overall integrity and security of the XRP Ledger network.

Conclusion:

This amendment aims to ensure that high-volume transactions on the XRP Ledger are transparent and traceable, thereby promoting the integrity and security of the network.

Approval:

This amendment requires approval by a majority vote of the XRP Ledger validators.

Date of Proposal: 2025-04-08

Proposed by: Sk3wd33

[Sk3wd33]

If there are no naysayers, I will be moving forward with the process.