XAO DAO intends to overhaul governance on the XRP Ledger over the next two to three months, introducing wallet delegation, quorum adjustments, and community mini-grants. Co-founder Fabio Marzella announced the plans, aiming to boost participation and representation as several XRPL projects scale back or shut down.
Wallet delegation and quorum fixes
Under the proposed changes, members could hand their voting power to others when they lack time or expertise. The group is also reviewing quorum requirements, including how inactive wallets count toward proposal thresholds, to prevent inactive participation from blocking decisions. Community mini-grants would let members submit smaller initiatives and seek funding for XRPL ecosystem projects.
“These aren't changes for the sake of change,” Marzella said, emphasizing the goal of giving the community “the ability to act” rather than just voting.
The Gen3 shutdown and its lessons
The governance push comes as Gen3 announced on August 12 it would spin down its retail platforms aigent.run and AxiomProtocol, citing weak user demand and rising infrastructure costs. Those platforms will stay live until September 13 so users can withdraw funds. Gen3 will continue its core XRPL infrastructure and participate in the amendment process.
Marzella said the shutdown shows that funding developers alone doesn't solve the problem of building sustainable businesses. The comment lands as several other XRPL projects have quietly pulled back.
Developers counting their last dollars
Builder Handy Andy described developers quietly calculating how much longer they can fund their own work, calling it “the last roll of the dice” for some. The strain is visible in market data: XRP closed near a 21-month low this week. Santiment figures show daily active addresses averaging 35,700 in August, up from 26,400 in July, but new wallet creation has stayed almost flat.
Marzella hasn't provided a final timetable or detailed voting mechanics for the proposed changes, promising more information as each initiative progresses.
What's still on the table
The September 13 deadline for Gen3 users to withdraw funds is fast approaching, and Marzella has pledged to share specifics on wallet delegation, quorum rules, and mini-grants as they take shape. Until then, the community is left watching whether these governance upgrades can turn participation into action.
