RLUSD is pegged to the U. S. dollar and is expected to finally go live this year in Ripple's ecosystem. First revealed last year, the initial plan was to launch on both the XRP Ledger and Ethereum. News recently came out that those plans have changed. It would appear that RLUSD may only launch this year on Ethereum, or it may launch on XRPL but without initial functionality of the AMM, limited instead to the DEX orderbook because the clawback feature restricts its use in XRPL's AMM.
Development amendments like XLS-73 and XLS-77 aim to address these limitations by strengthening the interaction between the AMM and the frozen assets, and implementing more rigid freezing of trust lines that prohibits RLUSD transfer by blacklisted accounts. The timeline for these types of amendments on XRPL is so unpredictable that it begins to raise concerns within the community.
Ripple CTO David Schwartz corrected that XLS-77 implements less stringent freezing rules than many had hoped for, which does indeed impact payments but doesn't completely freeze assets. Notwithstanding the technical advances, RLUSD's launch won't completely live up to expectations, with users requested to be patient. The reason the XRP community is up in arms is because RLUSD will reportedly have only limited functionality on the XRPL versus full functionality available on Ethereum, something which upsets many having something to do with Ethereum and Vitalik Buterin.