Ripple’s XRPL Welcomes XAO DAO as It Moves Toward Full Decentralization

Ripple’s XRP Ledger (XRPL) is preparing to enter a new chapter. With the upcoming launch of XAO DAO, the XRPL community is stepping into a governance-first model where XRP holders, rather than a centralized authority, will guide the platform’s future.

This marks a significant moment in the network’s 13-year journey. For years, XRPL has faced criticism for being too centralized, with Ripple Labs often perceived as holding the reins. XAO DAO is a direct answer to that concern. Launching it represents a move toward decentralization that could transform the way decisions, funding, and development are handled across the XRPL ecosystem.

What Is XAO DAO and Why It Matters

XAO DAO is the XRP Ledger’s first decentralized autonomous organization, co-founded by Fabio Marzella and Santiago Velez. It will serve as the governance backbone of XRPL—an organized structure where users can propose, vote, and fund ecosystem projects.

Unlike most DAOs, XAO DAO will not launch a new token. Instead, XRP will be used for all governance functions, eliminating the confusion and speculation that usually come with new tokens and airdrops. Users who hold XRP during the snapshot period will be eligible to vote, with each vote carrying equal weight.

This governance approach keeps the system lean, transparent, and anchored to XRPL’s native asset. The goal is to promote real utility rather than speculative trading.

From Ripple Grants to Community Control

Ripple has committed 1 billion XRP to fund ecosystem development, and until now, the company itself has managed these grants. That responsibility is shifting to a newly formed XRPL Foundation, which will distribute funds based on the XAO DAO governance process.

The foundation includes key players such as XRPL Commons, XRPL Labs, Ripple Labs—and now XAO DAO itself as a board member. That formal role gives the DAO influence over how XRPL grows, who receives funding, and which proposals are prioritized.

For many, this shows maturity. The XRPL community has long asked for a way to participate in its growth. XAO DAO delivers that structure.

Decentralized Voting, Real Utility

Voting will not be controlled by whales or skewed by short-term traders. Instead, vote weight is set based on XRP holdings during a defined snapshot. It ensures a fair process, where all community members have a voice, not just the loudest or wealthiest.

Members of XAO DAO will be able to vote on a range of proposals: from funding developer grants to supporting early-stage startups and even policy initiatives. There’s also funding planned for branding, validator support, and regulatory engagement.

The XAO DAO platform will leverage both the XRP Ledger and its upcoming Ethereum Virtual Machine (EVM) sidechain. Membership will be recorded on XRPL, while governance tokens used solely for proposal votes, will be minted and burned on the EVM sidechain.

This two-layer model ensures efficiency and transparency, without the need to issue a tradable governance token. It allows seamless tracking of proposals, votes, and results while protecting the integrity of the governance process.

What XAO DAO Means for Builders and Backers

XAO DAO is already attracting attention from builders, founders, and educators within the XRP ecosystem. Grants will soon be available for dApp developers, node validators, blockchain researchers, and even marketing initiatives designed to raise XRPL’s visibility in the wider crypto space.

This could help XRPL close the activity gap with competing chains. While XRPL has often trailed Ethereum and Solana in terms of DeFi adoption and innovation, recent developments like Circle USDC integration and tokenized U.S. treasuries from Ondo Finance suggest that momentum is building.

XAO DAO is designed to accelerate that momentum by funding meaningful work and ensuring that resources are directed where they can have real impact.

The full launch of XAO DAO is expected by the end of summer, just as several major upgrades hit the XRP Ledger. The EVM sidechain is also scheduled to go live soon, enabling developers to deploy Ethereum-compatible apps on XRPL.

At the same time, XRP adoption is rising in both traditional finance and DeFi. Canadian asset manager 3iQ recently launched an XRP ETF on the Toronto Stock Exchange, while DeFi protocols on XRPL are beginning to attract more users.