Developers working on Ripple’s XRP Ledger have submitted a code amendment, dubbed LendingProtocolV1_2, that aims to correct how loan repayments are rounded. The change is intended to prevent small calculation discrepancies from accumulating across scheduled payments, which can sometimes cause the final installment to be slightly higher than the agreed amount. According to crypto.news, the proposal was opened as a GitHub pull request on November 6 and is still under review, with no activation date announced.

Technical correction to repayment calculations

Under the current protocol, each payment’s value portion is calculated independently, allowing rounding differences to build up over time. The new amendment introduces a “telescoping” method that references the remaining repayment schedule when determining the outstanding balance after each LoanPay transaction. This ensures that the TotalValueOutstanding is reset to the scheduled value for the next period, capped at the rounded PeriodicPayment. The first code commit moves the scheduled‑value logic into a dedicated function, while a second commit implements the rounding correction. Tests across Legacy, CashBasis and FixedPrecision vaults indicate that the change does not alter existing behavior for loan creation (LoanSet) but aligns repayment processing with the same rounding rules.

Impact on existing loans and zero‑interest products

The amendment will primarily affect new loans and future repayments. Existing loans that already carry a one‑unit rounding excess will retain that discrepancy until a qualifying overpayment occurs, after which the corrected schedule will apply. Zero‑interest loans receive additional safeguards: the principal portion is rounded up while the total loan value is rounded to the nearest unit, preventing negative unpaid‑interest balances. Small overpayments that fall within the rounding tolerance are ignored, allowing the transaction to succeed without charging extra XRP.

Activation timeline and validator requirements

For the amendment to become active on the XRP Ledger mainnet, it must receive support from more than 80% of trusted validators for two consecutive weeks, as outlined in the ledger’s amendment process. No public vote has been scheduled, and the required validator consensus has not yet been achieved, leaving the rollout timeline uncertain.

What to watch next

Stakeholders should monitor validator voting patterns for the LendingProtocolV1_2 amendment, as well as any further GitHub updates that may refine the proposal. Confirmation of a public vote or a clear activation window would signal when the rounding fix will take effect, potentially improving the reliability of native lending on the XRP Ledger.