The latest move from Ripple to introduce native smart contracts on the XRP Ledger (XRPL) has stirred significant discontent within the XRP community, particularly from independent developers.

Notably, Ripple’s announcement marks a significant shift in its earlier stance regarding smart contracts on XRPL. As a result, it has drawn a mixed response, particularly from XRPL Labs, a key contributor to the XRPL ecosystem.

Ripple’s Smart Contract Strategy

Per the announcement on Monday, Ripple seeks to enhance XRPL utility with smart contracts leveraging a dual approach. It includes developing an Ethereum Virtual Machine (EVM) sidechain and implementing native smart contracts directly on XRPL Mainnet.

The aim is to expand the XRPL’s developer ecosystem and provide new functionalities for builders, enabling the creation of more versatile decentralized applications.

Meanwhile, just three months ago, at the XRP Ledger Apex event, Ripple’s CTO, David Schwartz, described the XRPL Mainnet as a “fixed function ledger.” This suggests that smart contracts were better suited for networks like the EVM sidechain or the Xahau network, an XRPL sidechain developed to support Hooks.

XRPL Labs Responds, Calling for Recognition and Collaboration

In response, Wietse Wind, Director of XRPL Labs, published an open letter expressing both frustration and disappointment over Ripple’s change in direction.

XRPL Labs has been advocating for a native smart contract solution on the XRPL Mainnet for the past four years through the development of “Hooks,” a Layer 1 smart contract solution designed specifically for the XRPL.

“Despite initial skepticism and limited support, we persevered, transforming this concept into a fully-fledged, battle-tested implementation,” Wind wrote.

Furthermore, Wind highlighted the challenges faced, including political hurdles and pushback. Regardless of these, he emphasized XRPL Labs’ commitment to the eventual launch of Hooks on the Xahau network, providing developers with a production environment to build and innovate.

Wind expressed mixed emotions over Ripple’s recent embrace of Layer 1 smart contracts, feeling that this recognition has come too late and at the expense of those who have been driving innovation within the ecosystem.

He criticized Ripple’s lack of direct communication regarding this pivot, which he believes undermines the spirit of collaboration and respect for the contributions of community developers.

Concerns Over XRP Ecosystem Fragmentation

Wind’s letter also raises concerns about the potential fragmentation of the XRPL ecosystem. He urged Ripple to support the existing Hooks technology on the mainnet, warning that pursuing a separate path could alienate dedicated developers and fracture the community.

The letter calls for Ripple to present a comprehensive proposal that demonstrates a genuine commitment to supporting community-driven innovation rather than attempting to “reinvent the wheel.”

“The sudden change in opinion and narrative is surprising,” Wind noted, pointing out the inconsistency in Ripple’s messaging. He also questioned Ripple’s decision to explore alternative technologies or “iterations of Hooks” without involving the original developers, describing it as “perplexing and concerning.”

XRP Army Reacts

Ripple CTO Schwartz addressed Wind’s concerns by clarifying that Ripple had communicated with XRPL Labs before their announcement. He noted that Ripple had consistently supported the Hooks initiative.

He acknowledged that while Hooks has potential, it might benefit from further updates to better suit the XRPL mainnet. Schwartz emphasized that Ripple is still exploring the best approach for smart contracts and seeks community collaboration.

However, Wind disagreed with Schwartz’s account. He stated that there was no formal discussion, only a brief message about a shift in Ripple’s stance on smart contracts. He expressed his readiness to support any progress on XRPL, whether it involves Hooks or not.

Adding to the debate, Yassin Mobarak, founder of Dizercapital, backed Wind’s position. He highlighted that Ripple’s primary obligation is to its shareholders, which might not always align with the broader XRP community’s interests.

He cautioned the community to be aware of potential divergences between Ripple’s goals and those of the XRP ecosystem.

I stand with @WietseWind and @XahauCommunity.@Ripple is a corporate entity whose primary and first interest is to work for the benefit of its shareholders (and I’m one of those shareholders), not the #XRPCommunity at large.

Now, for many years, both Ripple’s interest and the…

— Yassin Mobarak (@Dizer_YM) September 3, 2024