XRP Ledger Ushers in Era of Decentralized Governance with XAO DAO

• XAO DAO Marks New Phase in XRP Ledger Ecosystem
• Decentralized government uses XRP instead of new token
• DAO will support DeFi, educational and regulatory projects

The XRP Ledger has taken a major step towards decentralized governance with the launch of the XAO DAO, the network’s first native decentralized autonomous organization (DAO).

Set to debut by the end of the summer, the project aims to provide a framework for the community to actively participate in decisions about the ecosystem, including funding initiatives and fostering real-world blockchain adoption.

Rather than launching a new governance token, XAO will use XRP itself to power voting and decision-making processes. The move aims to avoid the risks associated with the volatility of newly minted tokens while maintaining a focus on community contributions and the practical utility of the network.

🧵 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗶𝗻𝗴 𝗫𝗔𝗢 𝗗𝗔𝗢: A New Era of Decentralized Innovation on XRPL

XAO DAO is not just another DAO—it's a next-gen governance engine built for the XRPL that empowers members to participate, vote, build, and fund real-world innovation.
Here's how it works—and… pic.twitter.com/9wYMlNwuHM

— XAO.DAO (@XAODAOLLC) June 17, 2025

The XAO DAO's proposal is to involve the XRP Ledger community through collaborative proposals, where members can suggest ideas, contribute directly to projects and influence the direction of XRPL's development. This model has already been adopted by other blockchains such as Cardano, which have been investing in decentralized structures to increase transparency and user engagement.

In addition to its governance activities, XAO DAO will play a key role in encouraging innovation. The organization intends to distribute grants to developers, validators, academic institutions, and startups that work with solutions focused on XRPL. Projects related to public policies, institutional marketing, education, and regulatory outreach will also be eligible for support.

The launch of XAO comes amid a period of growth for the XRP Ledger. The network has attracted attention with the recent issuance of five fiat-backed stablecoins, as well as tokenized U.S. Treasury assets. Another milestone expected this year is the arrival of an EVM-compatible sidechain, which should enable the creation of more sophisticated DeFi applications.

This growth is already reflected in network metrics. According to data from Santiment, the number of active addresses on the XRPL has skyrocketed to 295.000, up from a previous average of 40.000. At the same time, the expansion has attracted low-quality projects, reinforcing the need for community governance — exactly the role that the XAO DAO aims to fulfill.