The team at Ripple has announced a new accelerator plan for financial institutions joining RippleNet. The said institutions need to be first in their markets to process and promote commercial payments on RippleNet. Funded by $300 Million in XRP from Ripple’s holdings, the rewards will be processed via volume rebates and an adoption marketing incentive.
XRP Selling Restrictions Apply
In the case of the volume rebate, it is available in XRP or USD and meant to accelerate the adoption and usage of Ripple solutions. The team at Ripple has explained that selling restrictions will apply to customers willing to receive XRP for the rebate. Such restrictions are necessary to prevent any harm to the XRP markets if the assets are suddenly sold in bulk.
The team at Ripple further explains how the volume rebate will work.
The Volume Rebate provides license and integration-fee rebates to RippleNet members once they’ve reached integration and volume milestones by certain deadlines. Depending on the volume processed, these rebates can cover anywhere between 50 to 300 percent of the integration fees and first year’s license fees.
For the adoption marketing incentive, the program will match the marketing costs for eligible customers who promote Ripple solutions to their customers. Ripple will support the marketing efforts with tailored marketing content, messaging frameworks and tools in a bid to reduce their customer’s total costs. The incentive will be available on a first-come, first-served basis. It can be earned through XRP or USD. In the case of the former, similar selling restrictions will apply to support healthy XRP markets.
Benefits to XRP
Monica Long, VP of Marketing at Ripple, explained how the incentive will boost the use of XRP.
We’re borrowing a page from the likes of PayPal (with their early days adoption and referral bonuses), implementing incentives to accelerate network effects on RippleNet.
Since we’re offering the incentives in XRP, we anticipate seeing an added benefit of building an easy on-ramp for institutions to use XRP in their payment flows to lower liquidity cost in the future.
Early reception of these XRP incentives in a test phase has been very positive.