Understanding Reserve Rights (RSR)
What is Reserve Rights (RSR)?
Reserve Rights (RSR) is an ERC-20 token integral to the Reserve protocol, primarily used for two vital functions: overcollateralizing Reserve stablecoins (RTokens) through staking and facilitating governance by proposing and voting on configuration changes. This token was introduced to the market in May 2019 following a successful initial exchange offering (IEO) on the Huobi Prime platform.
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The Multifaceted Role of Reserve Rights (RSR)
RSR functions as the governance token for Reserve stablecoins, allowing stakeholders to propose and cast votes on changes concerning RTokens. Furthermore, it acts as a safeguard to ensure the stability of Reserve stablecoins in case a collateral token defaults. RSR holders have the flexibility to stake their tokens on a single RToken or diversify their holdings by staking across multiple RTokens. Alternatively, they may choose not to stake at all.
In exchange for providing this first-loss capital, RSR stakers receive a share of the revenue generated by the RToken they stake on. Typically, the larger the market capitalization of the RToken, the higher the potential returns (APYs) for RSR stakers.
Unlike many other staking models, RSR staking is designed to be sustainable and equitable. It does not rely on late participants funding early participants, nor does it require trust in the staking actions of other parties.
The Visionaries Behind Reserve
Reserve was co-founded by Nevin Freeman and Matt Elder. Freeman is an accomplished entrepreneur with a mission to resolve coordination challenges hindering humanity’s progress. Matt Elder, an experienced engineer with prior stints at Google and Quixey, played a pivotal role in architecting the Reserve protocol’s technical framework. Since its inception in 2019, the Reserve ecosystem has expanded significantly, encompassing a vibrant community, talented engineers, and dedicated legal and compliance teams, all driven by the shared aim of establishing Reserve as a scalable, open stablecoin platform that fosters economic growth.
What Sets Reserve Rights Apart?
Reserve stablecoins distinguish themselves from typical stablecoins, which are usually backed by U.S. dollars held in bank accounts controlled by issuers or trusted custodians. Instead, Reserve stablecoins are supported by a diverse basket of cryptocurrencies managed through smart contracts. Initially, these baskets consist mainly of other cryptocurrencies, such as liquid staking tokens (like stETH) or yield-bearing DeFi positions (like cUSDC). Over time, the Reserve community aims to diversify these baskets further, potentially incorporating fiat currencies, securities, commodities, and more complex asset types, like synthetics and derivatives.
Current Circulation of Reserve Rights (RSR)
The total supply of Reserve Rights is capped at 100 billion tokens. As of September 2024, approximately 52% of these tokens are in circulation. Though the maximum supply has been pre-mined, a significant portion remains locked, including 49.4% held in a smart contract known as the “Slow wallet.” Releases from this wallet adhere to a predetermined schedule.
At launch, the circulating supply was 6.85 billion tokens, with distributions including 3% to Huobi Prime IEO participants, 2.85% as project tokens, and 1% to private investors. All team, advisor, partner, and seed investor tokens have been unlocked following two options, one initiated in January 2022 and the other upon launching the full Reserve protocol on the Ethereum mainnet.
Security of the Reserve Rights Network
Reserve Rights operates as an ERC-20 token on the Ethereum blockchain, benefiting from the robust security provided by Ethereum’s proof-of-work (PoW) consensus mechanism, which is supported by a vast network of miners.
Where to Purchase Reserve Rights (RSR)
Reserve Rights (RSR) is a widely traded token, enjoying excellent liquidity across several top-tier cryptocurrency exchanges. Investors can purchase and trade RSR on platforms like Binance, Huobi Global, and OKX. It is available for trading against well-known cryptocurrencies such as Bitcoin (BTC), Tether (USDT), and Ethereum (ETH), as well as the U.S. dollar (USD).
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