Final Settlement with Jed

Final Settlement with Jed

Postby monicalong » Thu Feb 11, 2016 10:18 pm

We know many of you closely follow and have a vested interest in Jed’s XRP holdings, so we want to update you on a new agreement we came to, which fully extricates Jed from Ripple. In summary, the agreement ensures distribution of his XRP holdings against a timetable in service to a healthy, growing Ripple ecosystem with Ripple custodying the holdings itself. Jed has also agreed to sell all of his shares in Ripple, the company.

Jed exited Ripple back when it was OpenCoin in June 2013. He has played no role in the strategy or operations of Ripple since then. He has, however, held significant stakes of XRP and company shares. In August 2014, we shared the terms of a lock-up agreement that dictated timetables and limits within which Jed could sell XRP. The purpose of the agreement was to ensure distribution of his XRP in a way that would be constructive for the Ripple ecosystem. Since April 2015, Jed has been party to ongoing legal action related to alleged violation of the 2014 agreement.

The following are the key points of the new agreement:

Ripple will release any claim it has on the funds currently deposited with the federal District Court for the Northern District of California and Stellar will take possession of these funds.

Jed will donate 2 billion XRP to a charitable donor-advised fund ("DAF") of his choice. The same limits are placed on the ability of the charity to sell the XRP as are placed on the Jed's ability to sell his remaining XRP.

All of Jed and his children's remaining XRP, approximately 5.3 billion XRP, will be placed in a custody account at Ripple. While Jed retains full title and ownership of his remaining XRP, Ripple will control the release of his XRP in a manner consistent with the settlement agreement. Specifically, Jed will be allowed to sell his remaining XRP in the following manner:

- for the first year of the agreement Jed and the DAF will be able to collectively sell 0.5 percent of the Average Daily Volume of XRP for each day of the week, including weekends and holidays.*

- for the second and third years of this agreement, Jed and the DAF will be able to collectively sell for each day of the week 0.75 percent of the Average Daily Volume.

- for the fourth year of the agreement, Jed and the DAF will be able to collectively sell for each day of the week 1.0 percent of the Average Daily Volume.
for any time after the fourth year of the agreement, for each day of the week Jed and the DAF will be able to sell 1.5 percent of the Average Daily Volume.

We at Ripple are pleased with the outcome of this agreement. It provides predictability and clarity about distribution of the largest individual holding of XRP in a way that fosters good health and growth in the Ripple ecosystem.

*Under the settlement agreement, Average Daily Trading Volume is calculated by dividing the Weekly XRP Trade Volume for the week that commenced two weeks prior to the week at issue by seven (7). Weekly XRP Trade Volume is defined as the total amount of XRP traded on the Ripple consensus ledger during a given week between Sunday midnight Pacific Time through the following Sunday midnight Pacific Time. Significantly, this definition excludes XRP traded on third party exchanges, unless in Ripple's reasonable judgment, the XRP market has changed so that the majority of legitimate XRP transactions have occurred off the Ripple consensus ledger during the prior 365 days.
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Re: Final Settlement with Jed

Postby freequant » Thu Feb 11, 2016 10:52 pm

Basing the selling cap on a percentage of something that can be as cheaply and easily manipulated as the daily volume is tantamount to removing all transaction limits Jed was subjected to in the scope of the lockup agreement.
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Re: Final Settlement with Jed

Postby Omnis » Thu Feb 11, 2016 11:10 pm

It is great to hear an update about this matter and finally have some closure.
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Re: Final Settlement with Jed

Postby RafOlP » Thu Feb 11, 2016 11:41 pm

Thats great, congratulations! The end of an era.
Is there an agreement about what markets will be considered as real markets (to avoid bogus trading) ?
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Re: Final Settlement with Jed

Postby MikeF » Fri Feb 12, 2016 12:15 am

I am happy to see that an amicable settlement was able to be reached. It is very good news for everyone.
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Re: Final Settlement with Jed

Postby FMGC » Fri Feb 12, 2016 12:23 am

This are solid news. XRP Trade Volume, as we all know, is a true indicator of real activity in the network and those Ripple controlled selling limits are very reasonable. And congratulations to Jed for agreeing to donate those 2 billion XRP to a charitable donor-advised fund.
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Re: Final Settlement with Jed

Postby yvv » Fri Feb 12, 2016 1:13 am

freequant wrote:Basing the selling cap on a percentage of something that can be as cheaply and easily manipulated as the daily volume is tantamount to removing all transaction limits Jed was subjected to in the scope of the lockup agreement.


They claim that they arrested his funds. If this is true, this gives them an advantage to decide what the "true" volume is.
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Re: Final Settlement with Jed

Postby Robertharpool » Fri Feb 12, 2016 3:50 am

This is a very significant event. It sounds like a very reasoned settlement. I'm happy that it's no longer lurking in the background.

Congrats to the members of the Ripple team who clearly worked hard to create this arrangement and congrats to Jed et al. I am confident all parties will benefit.
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Re: Final Settlement with Jed

Postby kanaas » Fri Feb 12, 2016 6:55 am

FMGC wrote:This are solid news. XRP Trade Volume, as we all know, is a true indicator of real activity in the network and those Ripple controlled selling limits are very reasonable. And congratulations to Jed for agreeing to donate those 2 billion XRP to a charitable donor-advised fund.


What makes you sure it is trading volume and not transaction volume? Monica wrote just "Volume" so it can be transaction as well (unless this is better specified in the agreement documents)
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Re: Final Settlement with Jed

Postby Sukrim » Fri Feb 12, 2016 10:44 am

Thanks a lot for the update, Monica! :)

Some questions that came to my mind:

1) Which markets are counted towards "XRP volume"? After all, I could easily issue an asset on Ripple that has 0 fees and start trading it with myself against XRP. While some fees in XRP are going to be charged, compared to the volume created, these would be laughable.

2) Would it be possible to disclose the addresses in question that hold these funds (they are not THAT hard to data-mine anyways...)?

3) Will Ripple just send a certain portion of the escrowed funds to Jed so he can sell himself (potentially stockpiling for a few days in hope for a better price) or is the daily limit reset every day (e.g. today he sells 0 - tomorrow he still can't sell more than the x% in the agreement)?
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