Community members can propose, vote, and help direct funding through a formal governance cycle.
The XRP Ledger (XRPL) is preparing to launch its first decentralised autonomous organisation (DAO) in a bid to increase community participation and decentralised governance, according to a series of X posts on 17 June.
The XAO DAO will offer a structured system for XRPL users to contribute to decision making, to fund new initiatives, and to support blockchain adoption. The DAO plans to distribute grants to developers, validators, academics, and XRPL-based startups, as well as to support branding, public policy, and regulatory efforts.
Related: SEC Opens Public Comment on Franklin Templeton’s Proposed XRP and Solana ETFs
How XAO DAO Governance Works
In contrast to typical DAOs, XAO DAO will not launch its own governance token and will instead use XRP for all voting and governance processes. This move is aimed at avoiding unnecessary complexity and token-related volatility.
Voting power will be based on a snapshot of XRP balances taken during a defined window, ensuring only existing holders at that time can vote. This is intended to reward long-term engagement and to limit the influence of large holders acquiring XRP for short-term control.
The launch of XAO DAO marks a major step for XRPL as it moves toward decentralised governance. As a founding member of the newly established XRPL Foundation, XAO DAO LLC will serve as the governance engine for distributing 1 billion XRP in ecosystem grants, a role previously managed by Ripple.
This structure, through the XRPL Foundation, gives the XRPL community a formal mechanism to influence development priorities. Governance will follow a cycle where members join, submit proposals, and vote before grants are distributed.
Combined with growing DeFi interest, the upcoming EVM sidechain, and rising network activity, the DAO’s introduction could help unlock a more innovative and decentralised future for XRPL.
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