Why does Ripple XRP have a minimum balance?

Ripple's XRP is a special asset that has built-in rules on minimum balances held in XRP addresses, just like some bank accounts where you have to maintain a minimum balance. In order to activate and use XRP, you must first deposit no less than 20 XRP into your Exodus Ripple address.

After that, your account will activate and everything will be just like you are used to with Bitcoin, Ethereum or any other Exodus asset, except that the 20 XRP minimum cannot be moved out.

In this article

Ripple's official stance

The XRP asset is unique in that, unlike other assets, Ripple enforces reserve requirements in order to protect the shared global ledger from growing excessively large as the result of spam or malicious usage.

The goal is to constrain the growth of the ledger to match improvements in technology so that a current commodity-level machine can always fit the current ledger in RAM and the full ledger history on disk.

To submit transactions, an address must hold a minimum amount of XRP in the shared global ledger. You cannot send this XRP to other addresses. To fund a new address, you must send enough XRP to meet the reserve requirement.

The current minimum reserve requirement is 20 XRP. This is the cost of an address that owns no other objects in the ledger.

Base Reserve and Owner Reserve

In addition to the default 20 XRP minimum, which is the Base Reserve for each address, there is also an Owner Reserve, which is 5 XRP for each object of that an address owns on the ledger. 
So if you added two objects to your address, then the total reserve will be 30 XRP, which will be unspendable. 

You can read more information on the  Ripple reserve requirements in the official documentation.

How Exodus handles XRP minimum balances

Similar to how Exodus requires a minimum Ethereum balance to exchange ERC20 tokens, Exodus also requires a small amount of XRP to be stored in your wallet to remain in compliance with Ripple's enforced reserve requirements.

By default, a minimum balance of 20 XRP is required. If your XRP address in Exodus has less than this minimum balance, clicking on the "Receive" tab will display a modal (popup) with this warning to alert you of the situation:

XRP Minimum Balance Requirement

Please note that you will not be able to send XRP while the balance in your Exodus wallet remains below 20 XRP.

If your XRP address in Exodus contains less than  50 XRP, you will be alerted that your balance is low as a friendly reminder that transacting XRP may bring you below the minimum reserve requirement. This warning is displayed in the upper right-hand corner of Exodus when viewing your Ripple wallet.

XRP Low Balance

If you see the "Low Balance" warning, you can still transact with XRP but cannot dip below 20 XRP.

Once your balance exceeds 50 XRP, all of these notifications will disappear from the Exodus UI.

When exchanging other assets for XRP, Exodus will always make sure that you will receive more than 50 XRP to ensure these account minimums are covered.

Download the Exodus XRP wallet to experience XRP for yourself.

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