XRP Ledger vs. Ethereum: Ripple CTO Teases Game-Changing Shift in 2025

The crypto cage match just got hotter. Ripple''s CTO dropped hints that the XRP Ledger might be gearing up to outmaneuver Ethereum—and the timing couldn''t be more brutal for ETH maximalists.

Subheader: Speed, Scalability, and a Not-So-Subtle Jab

While Ethereum struggles with gas fees that could bankrupt a small nation, the XRP Ledger''s lean architecture keeps humming. No fancy smart contracts—just ruthless efficiency in moving value. Some call it boring. Banks call it ''finally usable.''

Subheader: The Regulatory Wildcard

XRP''s legal clarity gives it an edge Ethereum can''t code its way around. When the SEC comes knocking, proof-of-stake won''t save you—but a judge''s signature might.

Closing thought: In the race for blockchain supremacy, sometimes the tortoise wins. Especially when the hare''s too busy calculating gas fees.

TLDR

• Ripple CTO proposed two new models to upgrade the XRP Ledger’s transaction fee system.
• The first proposal would refund users who pay more than the minimum required transaction fee.
• The second proposal suggests using the median transaction fee to calculate and return any excess paid by users.
• These ideas aim to reduce overpayment and align the XRP Ledger’s model closer to Ethereum’s refund-based system.
• Ripple CTO emphasized that the current static fee model leads to unnecessary overcharges during transactions.

Ripple CTO David Schwartz has introduced new proposals aiming to overhaul XRP Ledger’s (XRPL) transaction fee system and improve cost-efficiency. His suggestions come amid rising concerns about static fee charges and overpayments on the network. These changes could position XRP Ledger to compete directly with Ethereum’s refund-based fee structure.

Ripple CTO Targets Overpayment With Dynamic Fee Model

Ripple CTO presented two solutions to improve how fees are managed within the XRP Ledger to reduce unnecessary costs. The first proposal aims to dynamically assess the minimum required fee after consensus is reached on a transaction. Any amount paid above this threshold WOULD be refunded to the sender.

This proposal introduces fairness by ensuring users only pay what is essential to confirm their transactions. It could help eliminate the pattern of fee overpayment currently seen on the ledger. As a result, it may enhance participation while preventing users from inflating bids just to secure processing.

Ripple CTO confirmed that this method will require adjustments to avoid impacting the consensus mechanism. Yet, the potential benefits include higher transparency and improved efficiency. This direction may make XRPL more attractive to developers seeking predictable transaction costs.

Median-Based Rebates Could Drive Fair Competition

Ripple CTO also proposed another model where the network calculates the median fee of accepted transactions in each ledger. Users who paid above this median would be refunded the difference, encouraging consistent and reasonable fee bidding. This method can reduce overestimation while still preserving processing speed.

He explained that both models reduce friction in fee prediction and cost planning. The Ripple CTO emphasized that excessive fees do not align with the ledger’s mission to offer fast and affordable payments. If implemented, this refund system could align XRPL more closely with Ethereum’s fee mechanics.

One idea is to compute the fee level required to get one more transaction into the ledger after the consensus transaction set is determined and rebate any fee above that level that any transaction tried to pay. You might have to tweak that a bit to make it not break consensus.

— David ''JoelKatz'' Schwartz (@JoelKatz) June 16, 2025

Despite that, the challenge remains in discouraging users from always submitting their highest acceptable bid. Ripple CTO pointed out that fee rebates would introduce more fairness and user confidence. These models are currently under discussion but could significantly alter the network’s fee landscape.

Contrasting Ethereum’s EVM Model with XRPL’s Hooks System

Ripple’s CTO highlighted key differences between ethereum and XRP Ledger in how each platform handles fees and refunds. Ethereum uses the EVM system, which refunds unused gas, giving users an incentive to estimate higher. In contrast, XRPL’s Hooks mechanism charges a fixed, static fee based on potential maximum use.

A senior XRPL engineer stated that this static model is not considered overpayment under current rules. However, network participants and validators suggested enhancing refund features to create better fee efficiency. Ripple CTO responded by sharing his proposed updates to make the ledger more competitive.

This comes ahead of the XRPL version 2.5.0 upgrade scheduled for June. Combined with the recent launch of USDC on the network, the proposals indicate Ripple CTO’s intent to reshape fee systems.