XRP Ledger embraces decentralized governance with XAO DAO launch

XAO DAO's launch to empower XRPL users in decision-making and governance processes.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The XRP Ledger has entered a new phase of community participation with the upcoming launch of XAO DAO, marking the network’s first decentralized autonomous organization (DAO).

This launch signals a shift toward deeper decentralized governance in XRPL’s future, offering users a structured way to engage in critical decisions, fund initiatives, and support real-world blockchain adoption.

However, the project is not yet live as it plans to fully launch towards the end of summer.

What is XAO DAO?

XAO comes as decentralized governance is gaining traction across major blockchain ecosystems like Cardano.

By eliminating centralized control, DAOs can bring transparency, inclusivity, and more equitable access to decision-making.

The XRPL-focused DAO follows this model, inviting community members to engage through exclusive proposals, community-driven contributions, and shared interest in the ecosystem’s direction.

XAO will rely on XRP to carry out its voting and governance functions rather than issuing a new governance token. This decision was made to avoid the volatility and confusion often associated with newly launched tokens, ensuring that focus remains on community input and utility.

In addition to governance, XAO aims to act as a catalyst for innovation.

The DAO will distribute grants to various contributors, including developers, validators, academic institutions, and XRPL-focused startups. Funding will also be extended to creative projects, public policy efforts, branding campaigns, and regulatory outreach.

XRPL’s growing momentum

The rollout of XAO comes at a time when XRPL is experiencing renewed momentum.

Over the past months, the blockchain has seen increased adoption from institutions and developers alike, evidenced by the launch of five fiat-backed stablecoins and tokenized US Treasury assets on the network.

Another significant milestone is the planned launch of an EVM-compatible sidechain later this year. This update will allow developers to build more complex DeFi applications on XRPL, extending its capabilities beyond payments.

As a result, XRPL’s user activity is on the rise. On-chain analytics platform Santiment reported that active wallet addresses on the blockchain have climbed to 295,000, up significantly from an earlier average of 40,000.

However, this growth has also attracted low-quality and scam-related projects, highlighting the importance of community-led oversight, something XAO DAO may now help deliver.