Former Ripple CTO David Schwartz recently explained the mechanics behind a spike in $XRP transaction fees during periods of peak performance.
Notably, Schwartz discussed how validators manage the network and fee structure during increasing demand for network resources. His comments came as XRPL activity climbed toward levels rarely seen before, with sustained transactions nearing 200 per ledger.
Key Points
- XRPL activity recently surged near 200 transactions per ledger, a threshold rarely reached in the network’s history.
- This increased network activity resulted in higher fees and load, leading to criticisms.
- Schwartz said fees increase when transaction demand exceeds network capacity, and even a slight overflow beyond limits like 200 TPS can push fees much higher.
- Validators determine the clearing rate collectively, needing at least a majority and sometimes up to 80% agreement, depending on the negative UNL setup.
- When performance drops, such as consensus rounds stretching to about 12 seconds, validators reduce transaction targets and shift the fee curve to stabilize the network.
Rising XRPL Activity
Schwartz’s explanations followed a disclosure from Vet, an XRPL dUNL validator, who called attention to a rise in usage. Vet pointed out that only a few times in $XRP’s history have transactions stayed above 200 per ledger for a sustained period, noting that the network was reaching that level again. Specifically, on March 23, the XRPL recorded 190 transactions in a ledger, a 1-year high.
Notably, an $XRP critic also raised concerns that came along with this feat. The critic said the network experienced a high load factor the previous night, which led to higher fees and caused several nodes to become overloaded. This suggested that the system was under pressure. Specifically, $XRP burned as fees surged above 1,400 on March 23.
Responding, Schwartz presented two main reasons fees rise on the XRPL. He explained that when the number of transactions goes beyond what the network can handle comfortably, fees increase to control the flow.
This are two very interesting things about fee escalation.
First, if there are more transactions than the network can comfortably clear, the fee will escalate to however high it has to be to keep the rate acceptable. If there’s even one TPS requested than the network can clear,…
— David ‘JoelKatz’ Schwartz (@JoelKatz) March 25, 2026
Even a small gap between demand and capacity, such as going above a limit of around 200 transactions per second, can push fees higher until the number of transactions drops to a manageable level.
How $XRP Validators Maintain Network Stability
Schwartz also revealed that validators help control how fast the network processes transactions. According to him, the system does not match the speed of the fastest validator or slow down to the pace of the slowest one.
Instead, validators agree on a balanced rate, usually needing at least a majority, and sometimes up to 80% agreement, depending on how the negative UNL works.
He added that the way validators are set up is particularly important. Notably, if a server already runs close to its limit and transaction volume suddenly doubles, it may fall behind even without fee increases.
This means proper setup and tuning affect when fees begin to rise. Essentially, if fees increase too early, the network processes fewer transactions than it could. If they rise too late, parts of the network may stop working properly during heavy traffic.
Validators Determine $XRP Fee Thresholds
When asked how validators decide on transaction limits, Schwartz said each validator makes its own estimate based on recent ledger activity. They look at how many transactions previous ledgers handled and use that as a guide. Then, they apply an exponential fee curve, which raises the required fee as demand increases.
He explained that the final cutoff depends on what half of the validators agree on. For instance, if recent ledgers regularly include about 200 transactions, validators will start raising fees once that number is slightly exceeded. If the network begins to slow down or validators disagree more often, they raise fees earlier to keep things stable.
Schwartz also shared how the XRPL deals with transactions waiting to be processed. Specifically, the system keeps them in a queue, sorted by the fees users are willing to pay, while giving priority to earlier transactions when fees are equal. Validators then fill each ledger with transactions until they reach one that does not meet the required fee.
He said validators vote on transactions one by one, usually following majority agreement. When the network shows signs of stress, such as consensus rounds taking about 12 seconds, validators lower the number of transactions allowed per ledger. This changes the fee curve and reduces the load on the system.
