What Is Reserve (RSR)?
Reserve Rights (RSR) is the utility token of the Reserve protocol that runs on the Ethereum blockchain. The protocol is used for developing stablecoins. However, Reserve stablecoins are backed by baskets of on-chain collateral assets instead of fiat currencies (as most stablecoins are). Reserve stablecoins are referred to as RTokens. Take a look at the Reserve Rights price chart above to see the live RSR price.
The Reserve Dollar (RSV) is one of the examples of RTokens. The stablecoin is pegged to the USD at a 1:1 ratio. It’s backed by a basket that consists of equal amounts of TUSD, PAX, and USDC, which is held on the Reserve Vault.
The Founders of Reserve
Matt Elder and Nevin Freeman launched Reserve in 2019.
Matt Elder has a degree in mathematics and computer science. Before founding Reserve, Elder worked as a software engineer at such companies as netSweng and Google. Besides that, he was a research engineer at Quixey and a researcher at Paradigm Academy.
Nevin Freeman, on the other hand, is a serial entrepreneur. Apart from founding Reserve, Freeman also co-founded RIABiz, MetaMed Research, and Paradigm Academy.
The Purpose of RSR Tokens
The Reserve Rights token is a utility token of the Reserve protocol and it’s especially important for RTokens. The RSR price is volatile since it’s not a stablecoin. Thus, it can be used to keep the prices of RTokens stable.
For instance, whenever the RSV price rises over its threshold, the newly issued RSR is sold by the protocol to bring it down. Also, whenever the value of the Reserve Vault, which holds the collateral assets, falls below a predetermined threshold, RSR is used to recapitalize the network.
Besides that, two other main roles of RSR tokens are governance and staking. In terms of governance, RSR token holders can propose and vote on changes considering RTokens. Besides, each RToken can have its own governance model, however, ideally, it should be decentralized and involve RSR tokens.
Regarding staking, owners of RSR tokens can stake their assets on any RToken or even divide their holdings among a number of RTokens. By doing this, their staked Reserve Rights coins act as a safety net for RToken holders in the case of a collateral token default (defaults occur when necessary interest or principal payments are not made).
For doing that, RSR stakers receive a percentage of the revenue generated by the RToken they chose to stake on.
Tokenomics of RSR
The max supply of Reserve Rights tokens is 100 billion. A private RSR coin pre-sale occurred in 2018, while a public one didn't happen until 2019. All of the RSR tokens were pre-mined during the launch. However, more than half of these tokens are locked in a smart contract called the Slow wallet.
Besides, note that the RSR total supply can be increased by minting new tokens, or decreased by burning them. This mostly depends on collateralization.
If you want to buy Reserve Rights tokens, bear in mind that the RSR price is prone to fluctuation. Thus, I'd suggest you analyze the Reserve Right price chart placed above to determine the main changes in the RSR value over time.
