XRP Ledger activates permission delegation so owners can keep main keys offline
In brief
- PermissionDelegationV1_1 activated on Oct. 8, according to monitoring site XRPL Dashboard.
- Helper accounts sign with their own keys and can hold up to 10 permissions.
- PaymentBurn should not be delegated until a separate fix activates, official guidance says.
- The separate fix had 27 of 35 validator votes Friday, short of the 29 needed.
How delegation works
The problem it targets is simple. Keeping keys with broad powers on an internet-connected computer increases the damage if that computer is compromised. Under delegation, a stablecoin issuer can let a compliance account approve new customers while its main keys stay offline.
The helper signs with its own keys. It can only perform the actions it's been granted, and the owner can change or withdraw those permissions. Each helper can receive up to 10 permissions (these restrict the kinds of actions it can take; they don't automatically impose a spending cap).
Banks already separate payment and compliance duties among staff, and CoinDesk said the upgrade gives businesses a way to make those divisions enforceable on the ledger. For a sense of scale, the network held an average of $3.72 billion in tokenized assets and $539 million in Ripple's RLUSD stablecoin in the second quarter, according to a report from Evernorth (an XRP treasury company) shared with CoinDesk. Together, that's about $4.26 billion.
A slow road to activation
XRP Ledger upgrades need more than 80% support from trusted validators for two straight weeks, per CoinDesk. With the current list of 35, that means at least 29 supporters. Delegation's countdown reset in September after support slipped below that level.
The PaymentBurn caveat and a counting bug
There's a catch.
Official XRPL guidance, as reported by CoinDesk, tells users not to delegate the PaymentBurn permission until a separate fix activates. Under certain conditions, that permission also lets a helper create new tokens. The warning concerns tokens issued on the ledger, not newly minted XRP, and other granular permissions aren't affected.
The fix had 27 of 35 validator votes on Friday. It needs 29 to start the two-week countdown.
A separate report filed Oct. 8 found that some servers can drop a validator from their count after it changes a routine security key, even while that validator is still online and voting. A server that loses track of two validators would measure support against 33 instead of 35, which can make a proposal look closer to passing than it actually is. A proposed patch would have servers identify validators by a permanent ID instead, and it's still under review.
Frequently asked questions
How does permission delegation on the XRP Ledger work?
An account owner can give a helper account permission to do specific jobs without handing over the controlling keys. The helper signs with its own keys and can only perform granted actions. Each helper can receive up to 10 permissions, and the owner can change or withdraw them.
Why are users told not to delegate the PaymentBurn permission?
Under certain conditions, PaymentBurn also lets a helper create new tokens. Official guidance says not to delegate it until a separate fix activates. The warning concerns tokens issued on the ledger, not newly minted XRP, and other granular permissions are unaffected.
How many validator votes does an XRP Ledger upgrade need?
Upgrades need more than 80% support from trusted validators for two consecutive weeks. With the current list of 35 validators, that means at least 29 supporters. The PaymentBurn fix had 27 of 35 votes on Friday.
