The XRPL cleanup amendment is holding at exactly the threshold needed for activation, while proposed lending amendments remain well below the required support. As of October 18, 29 of the 35 validators monitored by the XRPL Dashboard supported fixCleanup3_4_0. The amendment requires strictly more than 80% approval, making 29 votes the minimum; 28 of 35 is not sufficient. Amendments are how the XRP Ledger adopts new rules, so this count is what determines whether the bundled fixes take effect on schedule.

The dashboard has recorded the majority since October 9 and projects activation on October 23 at approximately 09:34 UTC if support remains unchanged throughout the two-week period. It describes the amendment as having “no votes to spare.”

The amendment contains about 25 fixes, eight of which concern vaults and lending. Other changes affect automated market makers (AMMs), trust lines, non-fungible tokens (NFTs), Multi-Purpose Tokens, escrow, sponsorship signing and permission delegation.

How XRPL lending is designed to work

The proposed XRPL lending system would connect depositors, a loan broker and borrowers through a vault. Depositors would place one asset into a Single Asset Vault, while a broker would arrange fixed-term, uncollateralised loans from that pool. Borrowers would repay according to agreed terms, according to the XRPL lending documentation.

The ledger would administer the loans, but underwriting would take place off-chain. The current design also does not include automated on-chain collateral liquidation. A previous overview of the proposal was published by Coindoo. Like every XRPL feature, the lending system would go live only through the amendment vote: until its amendments clear the same supermajority threshold and 14-day hold, the vault-and-broker design remains a proposal rather than live ledger functionality.

Vote status and activation timeline

The 29 votes supporting fixCleanup3_4_0 are important because the XRPL amendment process requires a majority of more than 80% of trusted validators. The dashboard monitors 35 validators, and the threshold is therefore 29.

The process has already shown how a lost majority can affect activation schedules. PermissionDelegationV1_1 fell to 28 of 35 votes on September 23. BatchV1_1 lost its majority for one roll call on September 25, restarting its two-week activation clock before the amendment was enabled on October 9. Under the official amendment process, losing the required majority resets the two-week period.

The lending amendments still need between eight and 10 additional votes, followed by a 14-day hold. As a result, none can activate before early November at the earliest.

There is also a caveat concerning the validator counts. A report filed October 8 in the rippled GitHub repository says version 3.4.1 stops counting a validator’s votes after the validator rotates its signing key and is removed from the threshold. The reporter observed 33 validations and a threshold of 26 rather than 35 and 28, and noted that no amendment outcome had changed, Unchained reported. A patch remained open for review as of October 9.

What fixCleanup3_4_0 changes

The cleanup amendment is broader than a lending update. According to the XRPL amendment list, its roughly 25 items include the following changes:

• Trust lines: An issuer’s block on incoming trust lines will also apply to offers. An account will therefore no longer be able to receive tokens through an offer when the relevant incoming trust line is blocked.
• AMM clawbacks: A clawback will no longer burn a holder’s pool tokens without recovering anything when rounding reduces the amount to zero.
• Escrow: Cancelling or completing an escrow that returns tokens will no longer fail when the owner at the reserve boundary.
• Signatures: Sponsor and counterparty signatures will use distinct prefixes, preventing a signature created for one role from being replayed as the other.

These changes are described in the xrpld 3.4.0 release notes. They also affect a feature that went live on October 8. XRPL documentation advises against delegating the granular PaymentBurn permission before the cleanup is enabled because a delegate holding that permission may be able to create new trust-line tokens or Multi-Purpose Tokens, rather than merely destroy them, according to Unchained. The cleanup rejects PaymentBurn-only payments that would move a zero balance into a mint.

Effects on vault deposits and accounting

Vault shares are Multi-Purpose Tokens whose value follows the assets held by the vault. The ledger also tracks an “unrealised loss” on loans marked as impaired. In an example from the vault documentation, a vault holding $1.0 million with a $900,000 unrealised loss has a withdrawal exchange rate of 0.1.

The cleanup makes three changes to this part of the system. Deposits, withdrawals and clawbacks use more precise rounding, helping keep a vault’s total assets, available assets and share supply consistent. A fixed-share withdrawal from a fully impaired vault can transfer zero assets instead of failing. The transaction completes without recovering any money, and the release notes do not explain why this behavior replaced a failure.

The amendment also changes loan lateness, impairment and default checks. The due date must have strictly passed before a loan can be flagged, meaning a loan cannot be marked late or in default on the due date itself.

This is the fourth cleanup amendment directed at the relevant code. XRPL’s vault documentation says fixCleanup3_1_3 through fixCleanup3_4_0 each introduced precision, rounding or correctness fixes to vault behavior following the system’s 2025 audit.

Interest and withdrawals under LendingProtocolV1_1

LendingProtocolV1_1, introduced in version 3.4.0, changes how a vault accounts for interest. Previously, a vault counted a loan’s full scheduled interest as income when the loan was originated and had to reverse that income if the borrower stopped paying.

The lending documentation gives an example involving a vault with 99,000 available tokens and a 1,000-token loan carrying 90 tokens of scheduled interest. Under the previous approach, the vault reports 100,090 in total assets. Under cash-basis accounting, interest is counted only when a payment delivers it. Share prices are therefore not increased by scheduled but unpaid income, and losses appear smaller because only principal is at risk.

The same amendment adds closed-ended vaults. They pass through three phases on dates fixed when the vault is created, and those dates cannot be changed. Once V1.1 is enabled, new loan brokers can use only closed-ended vaults, according to the XRPL Single Asset Vault documentation.

The accounting model depends on when a vault is created. Vaults created before V1.1 activates will permanently retain the earlier interest model, even after V1.1 is enabled. The documentation also allows a gap between activation of the two amendments. LendingProtocol and V1.1 each had 19 votes in the October 18 snapshot, but their identical vote counts do not guarantee that they will activate together.

First-loss capital and loan defaults

A broker may provide optional first-loss capital, but two settings limit how much of that capital reaches a vault after a default. CoverRateMinimum specifies the share of debt that must be covered, while CoverRateLiquidation limits how much of that minimum is sent to the vault when a loan defaults.

In an example from the XRPL Lending Protocol documentation, a broker supplies 1,000 tokens of cover and a 1,090-token loan defaults. With both rates set to 10%, only 10.9 tokens of the cover are applied, leaving the vault with a 1,079.1-token loss. Brokers set the rates, so actual pools may use different parameters.

If available cover falls below the required minimum, the broker cannot issue new loans, and its fees are directed into the cover. That limits new exposure but does not cause an existing borrower to repay.

Asset issuers also retain certain controls. If a vault’s asset is frozen, withdrawals can be made only to the issuer. Issuers can also claw back vault shares into assets sent to them. A frozen borrower cannot make payments, but the freeze does not cancel the debt.

Dates and issues to monitor

The cleanup is projected to activate on October 23 at about 09:34 UTC if all 29 supporting validators maintain their votes for the full activation window. A single validator dropping support would restart the two-week period, as happened with PermissionDelegationV1_1 and BatchV1_1.

The lending amendments require 29 votes and then a 14-day hold, placing their earliest possible activation in November. The timing gap between LendingProtocol and V1.1 is also material because a vault created during that gap will retain the older interest-accounting model.

Finally, the proposed vote-counting patch remains relevant. It would prevent validators from disappearing from the vote count after rotating their signing keys.

This article is provided for informational purposes only and does not constitute financial or investment advice. Amendment schedules can change, and lending involves credit and liquidity risk.

Source: [Coindoo](https://coindoo.com/xrpls-cleanup-votes-spare-lending-short/