0071 XLS-71d: Initial Owner Reserve Exemption

[xVet]

Terminology

The reserve requirement has two parts:

The Base Reserve is a minimum amount of XRP that is required for each address in the ledger.
The Owner Reserve is an increase to the reserve requirement for each object that the address owns in the ledger. The cost per item is also called the incremental reserve.

Abstract

This proposal introduces the general initial owner reserve exemption.

The first two account objects that are counted towards the OwnerCount shall not increase the Owner Reserve. We enforce the increase of the Owner Reserve , if OwnerCount > 2 , else zero (Free) - For all objects that can be owned by an account e.g Offers, DID, NFTs, Trustlines, Oracles etc.

Motivation

1. We do this to allow new created accounts by users / enterprises to be immediately able to use the XRP Ledger without the need initial XRP for reserves to accept an NFT, Loyalty points, Stablecoin, a RWA etc thus signficantly reduces the initial pain point of using the XRP Ledger without compromising the logic behind reserves, if accounts wish to own more objects then the XRPL will enforce just normally the reserve requierments.

Owning an object on the XRP Ledger is a powerful feature that should be allowed up to the threshold of 2, to be free for any account.

2. In order to reduce the base and owner reserve long term, this step is a good middle ground. Typically, the concern around account deletion fee is associated with this topic. With this proposal we can keep this fee stable, as it is the owner reserve, reduce the base reserve long term but also get around the initial pain point of owner reserve funding

3. Xahau has the import feature, whereby if you import an activated XRPL account to Xahau, you get also 5 object slots for free. This seems to work well, where the account deletion fee on the XRPL is enough friction to prevent spam.

4. We already have this owner reserve exemption in a single case, for trustlines or more specific the SetTrust transaction, which helped trustlines to be a very popular and poweful feature on the XRPL for any new user.

Implementation example

XRPAmount const reserveCreate(
    (uOwnerCount < 2) ? XRPAmount(beast::zero)
                      : view().fees().accountReserve(uOwnerCount + 1));

Enforcing increase of owner reserve if OwnerCount > 2 in the SetTrusttransaction

FAQ

A: Can this allow spam attacks ?

I don't see any attack vector that scales due to only the first two account object threshold, evidence in regards to Trustlines suggests that this is not a concern yet. Worst case, validators increase owner reserves in case spamming is observed, but the account deletion fee should be enough to prevent this.

A: How to roll this exemption out and which transactors should have it ?

It makes sense to include this exemption over time to as many object creation transaction as possible in case of adoption, while closely monitoring the network.

[mvadari]

A couple of questions.

1. Your first two trustlines are free right now (a little-known feature). This is basically just an extension of that philosophy to all objects?
2. If I own 3 objects, do I owe 3 reserves or just 1? i.e. is the reserve exemption temporary?
3. Why roll it out slowly instead of in one amendment all at once?

[brettmollin]

re: 1, I think of it as "the first 2 trustlines can be unfunded" rather than "free". If you have enough XRP it is locked in reserve, if you don't have it you can still create 2 unfunded trustlines. Actually making it free could be less confusing.

[xVet]

A couple of questions.

1. Your first two trustlines are free right now (a little-known feature). This is basically just an extension of that philosophy to all objects?

2. If I own 3 objects, do I owe 3 reserves or just 1? i.e. is the reserve exemption temporary?

3. Why roll it out slowly instead of in one amendment all at once?

1. Correct

2. The reserve exemption is permanently from what i saw, though that's a good question to double check.

3. I would roll it out to as many as possible in one go but i want to leave room for people to defend the enforcing of owner reserve for specific object creating transactors if they deem it necessary

[mvadari]

2. It's not permanent IIRC, I believe you owe 3 reserves after you have 3 trustlines.

[mDuo13]

I'm supportive of this. The "two free trust lines" rule has been an obscure and little-used feature, but expanding it to all ledger types is good generalization, and this is a good opportunity to revisit the original design and make it less surprising.

I would personally not roll it out in multiple stages, but would go straight to, "You can own any two ledger objects with no reserve requirement" for simplicity.

[xVet]

I'm supportive of this. The "two free trust lines" rule has been an obscure and little-used feature, but expanding it to all ledger types is good generalization, and this is a good opportunity to revisit the original design and make it less surprising.

I would personally not roll it out in multiple stages, but would go straight to, "You can own any two ledger objects with no reserve requirement" for simplicity.

Thank you @mDuo13 ! Good approach with skipping the stage rollout

[MarkusTeufelberger]

Maybe generalize it to "the first 2 owner reserves are free"? There might be features that cost more than 1 owner reserve per object in the future for some reason (e.g. very heavy cost computation or storage wise) and making any first 2 objects free might cause a price difference.