Every XRP wallet on the XRP Ledger must maintain a minimum balance of 1 XRP to remain active. This is called the base reserve requirement. Additionally, each object an account owns in the ledger (trust lines, offers, escrow) requires an additional 0.2 XRP owner reserve.
The reserve requirement is not a transaction fee — it is a security deposit held in the account. It prevents the creation of millions of spam wallets that would bloat the ledger state. The reserve amount is set by validator consensus and can be changed through the amendment process.
When you first fund an XRP address, at least 1 XRP must be sent to activate the wallet. This initial XRP cannot be spent below the reserve threshold. If an account's balance drops below the reserve, the account becomes restricted — it cannot initiate new transactions but can still receive XRP.
Base Reserve vs Owner Reserve
- Base reserve: 1 XRP required for every active wallet address
- Owner reserve: 0.2 XRP additional for each ledger object the account owns
- Trust lines: Each token trust line adds 0.2 XRP to the owner reserve
- Open offers: Each open DEX order adds 0.2 XRP to the owner reserve
For most users holding and sending XRP directly, only the 1 XRP base reserve applies.