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Following
XRP XAO DAO plans to implement a major governance upgrade to the XRP ledger to increase community participation
According to XAO DAO co-founder Fabio Marzella, the organization is preparing to implement a series of governance changes to the XRP ledger in the next two to three months. The planned changes will allow members to delegate voting rights, adjust quorum rules, and obtain small community grants. At a time when multiple XRPL projects have been scaled back or closed, the DAO hopes to make participation easier and more representative.
XAO DAO is committed to expanding participation
Marzella said the first change will introduce wallet delegation functionality, allowing members to delegate voting rights to others when they lack time or expertise to vote on individual proposals. The DAO is also reviewing its quorum requirements, including how inactive wallets affect the calculation of proposal thresholds. The explicit goal is to prevent inactive participation from hindering decision-making, while maintaining the connection between governance and active communities.
Community microfinance is a new addition to another plan. Under the proposal, members will be able to submit small project plans and seek financial support for projects that will help the XRPL ecosystem.
Marzella wrote: "These changes are not for the sake of change." The broader goal, he said, is to create a DAO where communities not only have voting rights, but are also "capable of action."
This timing comes at a time when questions about developer support issues are growing in the XRPL community. On August 13, Marzella said the closure of the Gen3 retail platform showed that funding developers alone will not solve the problem of building a sustainable business.
XRPL infrastructure team Gen3 announced on August 12 that it will gradually close its two retail products, aigent.run and AxiomProtocol, due to weak user demand and rising infrastructure costs. Gen3 said the platforms will continue to operate for a month until September 13, allowing users to withdraw remaining funds, while its core XRPL infrastructure will continue to operate and participate in the ledger revision process.
Marzella views the Gen3 news as evidence of a larger problem, arguing that if funding projects cannot move towards sustainable business, funding developers will only solve half the problem. In the same discussion post, Builder Handy Andy responded that colleagues were silently calculating how long they could maintain the project out of pocket without support, describing this as a "last-ditch attempt" by some people.
Activity has increased
The reorganization comes as XRP closed at a nearly 21-month low this week. Sanitation data showed that the average number of daily active addresses in August was 35,700, up from 26,400 in July, although the number of new wallets was almost flat.
This difference may be important for the XAO DAO participation plan. Increased activity among existing users does not automatically mean that more people are participating in governance.
Currently, Marzella has not provided a final timetable or a detailed voting mechanism for the proposed changes, but instead promises to provide more information as the initiatives advance. The community will wait and see how commissions, quorum changes and micro-grants will ultimately be implemented.
