A destination tag is a unique number generated in addition to your address, it works with the address to ensure a deposit or withdraw reaches it's destination.

BNB beacon network is another example for a blockchain that uses tags along with their addresses.

In order to open an address on a blockchain, each blockchain treat this differently.

For example:

Tron network requires you to send 1 TRX into an address to activate it after you create it, before you do so it remains inactive, and later you can remove the 1 TRX.

Ethereum, Bitcoin, and all other blockchains forked from them allow you to create as many addresses as you wish without any funds deposited into them.

XRP on the other hand requires you to deposit a 20 XRP in order to open an address, and you can not remove it unless you wish to close the address.

Now imagine if a site like Chips.gg or Binance with thousands of active users had to create a unique XRP address for every account, in this case for each person that deposit XRP a 20 XRP fee will have to remain inside the address forever without the site being able to retrieve them, other wise the address will close.

Well... No it is not.

The way to avoid paying 20 XRP for each address is creating one single address for all accounts, and then use unique destination tags to define each deposit whom it belongs to.

Yes, as you read, ALL accounts on Chips.gg share the same deposit XRP address, but each has a different destination tag, for this reason if you make a XRP deposit on Chips.gg you are REQUIRED to attach the destination tag provided to you into the transaction.

If you make a deposit without including the destination tag then you won't receive the deposit.

Consider the XRP address as a building, and the tag is the apartment number. If a mail is delivered to the building and it has no apartment number, there is no way for the person in charge to know whom this mail belongs to, and thus it will sit at the front desk. And this will create the complicated situation that "anyone" can claim it since it has no apartment number on it.

Then comes the hard process of you proving that it was actually yours and that you just forgot to input the apartment number (Being the Destination TAG in this place).

In this case you should always remember, that if you deposited into Chips.gg without including your destination tag then you won't receive the deposit, so this should be a clear answer for your issue.

You either contact the support and ask them where to input the destination tag and include it in the transaction, or if you cant find it or they say it's not supported then you DO NOT deposit without the tag and you will need to find another wallet that support destination tags.

As shown in the example below, on withdraw we do say that Destination Tag is optional.

We were talking all this time about depositing XRP into Chips.gg, and that you MUST include the destination tag with your address to receive the funds, that is how our system works, that is how WE recognize that the deposit made is yours.

But now you are trying to withdraw from Chips.gg, withdraw is something else... The Tag is called "Destination Tag" for a reason, it is not called "Origin Tag", so for withdraw you need to check with your destination, we say it's optional because you might be withdrawing into your own XRP address, that you own.. You do not need a destination for it.

But you might also be withdrawing to an exchange such as Binance, they do need a destination tag with XRP deposits.

So we give you the option to include the tag or not, depending on if the receiving end need a tag or not. If you request a withdraw without a tag we will send, and if you add a tag we will send it too...

It is YOUR responsibility to know if the address you are withdrawing to requires a destination tag or not.