The Evolution of the XRPL Foundation: A New Era for XRPL

By XRPL Foundation, XRPL Labs, XRPL Commons, and Ripple

Earlier this year a transformative evolution of the XRPL Foundation was announced. Organizations including XRPL Commons, XRPL Labs, Ripple, and XAO DAO, a community DAO, have started the process of establishing a new, inclusive, and visible XRPL Foundation to provide long-term security, coordination, and effective, decentralized contributions to the XRPL, while at the same time promoting enhanced collaboration between community members.

Since the initial announcement, the first steps towards the creation of the new XRPL Foundation have commenced. This article delves into the recent developments, exploring the new Foundation's incorporation, objectives, governance, and structure.

A Significant Milestone: The Incorporation of the New Foundation

Today, November 26th, 2024, a milestone has been reached as the incorporation documents for the new XRPL Foundation were filed in France today. This non-profit association, governed by French 1901 law, has been filed under the name 'XRP Ledger Foundation'. The decision to incorporate in France aligns with the original objectives laid out in the XRPL.org post on August 10th, 2024, and marks a new chapter in the Foundation's history. You can access the official filing online.

The XRPL Foundation will operate under French law, with the Paris Court of Appeals having exclusive jurisdiction over disputes. As part of the incorporation of the new Foundation, a comprehensive set of bylaws has been established to ensure effective governance. The bylaws provide a framework for decision-making, member roles, and operational procedures.

You can also view the full copy of the bylaws in both French and English (PDF).

The New Foundation’s Purpose

The new XRPL Foundation’s purpose is clear: to promote and facilitate a secure, resilient, inclusive, and thriving XRPL community which empowers users and developers to confidently build decentralized applications, financial tools, and infrastructure.

It will achieve this by focusing on two key objectives:

To promote and facilitate the community and operations of the XRPL.
To support the XRP Ledger, ensuring it functions in an open, decentralized, and transparent manner.

Responsibilities and Areas of Focus

To fulfill its purpose and meet its objectives, the Foundation has outlined an extensive list of areas that it will focus on:

Enhancing security and stability of the XRPL
Promoting the adoption of XRPL technology
Safeguarding the intellectual property of the XRPL
Empowering developers through resources and support
Building transparent governance structures
Forging strategic partnerships to expand the community
Educating and engaging the community
Supporting sustainable development practices
Engaging in regulatory advocacy
Driving interoperability with other blockchain networks

To measure the success of the new Foundation, a number of key indicators will be monitored, including:

Increase in developer engagement
Establishment of new partnerships
Regulatory advancements
Community adoption rates
Membership growth

Governance and Bylaws

The four Founding Members involved in creating the new Foundation - XRPL Commons, XRPL Labs, Ripple, and XAO DAO - will continue to play a key role on the Board of Directors, a vital element of the new Foundation’s robust governance structure.

In addition to the four core Founding Members, the Board of Directors will comprise additional rotating Directors, who will be shortlisted based on their expertise and elected subject to a majority vote by the four Founding Members. In this way, balanced representation from a broad range of stakeholders will be maintained, underpinning the new Foundation’s ethos of inclusivity and representation from the entire XRPL community.

The membership structure will ensure both institutional continuity through the Founding Members and fresh perspectives through the rotating Directors, with specific provisions for handling changes in control to maintain organizational stability.

Key decisions including strategic direction, budget plans, membership criteria, and any major organizational changes will require Board approval. The advisory role played by the General Assembly will ensure that these decisions are informed by a broad community perspective.

The Board will elect a President, Secretary, and Treasurer for two-year terms, with the President being elected from amongst the Founding Members. While the Board maintains primary decision-making authority, a General Assembly will serve as a democratic forum where Associate Members can provide advisory input on strategic decisions. The Assembly will meet at least annually and requires a quarter of members present for quorum, representing the community's voice through a permanent observer seat at all board meetings. Each member is allocated one vote.

The new XRPL Foundation will maintain several key committees including Membership, Audit, Infrastructure, Core Development, and UNL committees. The Membership Committee will evaluate new member applications and eligibility, the Audit Committee will oversee financial integrity, the Infrastructure Committee will focus on technical development and maintenance, and the UNL Committee will manage validator network oversight.

The Board also has the power to create additional ad hoc committees as required, providing flexible opportunities for members to contribute to specific initiatives or projects. This multi-layered engagement structure, which represents best practice based on other similar tech foundations, ensures that while governance remains stable through the Board and Founding Members, the Foundation will maintain strong community input and participation through the committees and the General Assembly.

The XRPL Foundation is committed to transparency from day one and will openly publish the budget, work plan and internal rules of procedure once completed.

What Are the Next Steps?

As the new XRPL Foundation embarks on its journey, several critical steps lie ahead:

Transfer of assets (listed in the earlier blog post) from the previous entity to the new Foundation.
Recruitment of an Executive Director and staff to lead day-to-day operations.
Further building out of relevant committees and establishing processes for efficient governance.

Completing these steps will be crucial in ensuring a smooth transition from the previous entity and setting the stage for the new Foundation's future success.

Encouraging Greater Community Involvement

The new XRPL Foundation has been designed with inclusivity in mind. The Foundation's committee structure will ultimately present exciting opportunities for community involvement, by providing multiple entry points for the wider XRPL community to contribute.

In early 2025 the Committees will be launched, enabling all individuals and organizations to get involved with the new Foundation, firstly by applying for Associate Membership through the Membership Committee, then by participating in the General Assembly and potentially joining specialized Committees based on expertise.