Built on the Ethereum blockchain, the Reserve Rights (RSR) token powers the Reserve Ecosystem of the first permissionless platform that develops asset-backed, yield-bearing, and overcollateralized stablecoins. The RSR token aims to provide a stable alternative to volatile cryptocurrencies like Bitcoin and Ether by creating a decentralized monetary system that is highly scalable.
The fundamental goal of the Reserve Rights project is to provide a trustless and centralized-free banking platform. Eventually, the Reserve Rights protocol underpinning the platform hopes to make its Reserve Rights (RSR) token usable on every blockchain platform that supports smart contracts. Read on.
The Reserve Rights Project
The team that developed the Reserve Protocol wanted to create a stablecoin that is fully decentralized, has a network of fiat on/off ramps, and can’t be entirely shut down once it’s established.
With a stablecoin, billions of people around the world who don’t have bank accounts will also have a safe place to deposit their money. The Reserve Protocol was developed as a means of evading dishonest banks and governments, allowing individuals to store their capital in a way that is secure against theft or inflation.
The Reserve Protocol makes this idea a possibility by establishing a stable cryptocurrency that is completely decentralized and backed by a wide variety of assets. With the Reserve Protocol stablecoin, people all across the world are now able to conduct business with few bureaucratic hurdles. Plus, the fact that it’s decentralized and hard to shut down will prevent governments from abusing the funds.
How Does the Reserve Rights (RSR) Protocol Work?
Reserve Rights’ primary objective is to create a decentralized banking software that does not rely on trust or central authority. A distinctive feature of the Reserve protocol is that the stablecoins are backed by a pool of cryptocurrencies regulated by smart contracts.
Stablecoins issued using the Reserve protocol are backed by a pool of cryptocurrency assets controlled by smart contracts. This is very different from other stablecoins, which are typically backed by fiat currencies like US dollars and kept in a bank account owned by a stablecoin issuer.
Since cryptocurrencies are known for being very volatile, this has caused a chain reaction of problems in the crypto market. Reserve Rights works to stop this, as it slows the growth of the crypto market as a whole.
The Reserve Rights protocol offers a secure means of having stable currency as an alternative to centralized fiats. It does not require special authorization and allows for the independent operation of several different fiat networks.
For this, the protocol employs a dual-token system comprised of the RSR token and the RSV stablecoin. The Reserve Rights stablecoins (RSV) are there to make internal blockchain transfers as seamless as possible, while the protocol’s long-term goal is to use the Reserve Rights (RSR) token across all blockchains that host smart contracts to facilitate the transactions.
The RSR Token
The RSR token is a utility token that can be obtained within the Reserve Rights ecosystem. It is a crucial instrument in the process of keeping the RSV value at its current rate, which means that it helps to ensure the token’s price consistency.
RSR is the primary governance token of the Reserve network and ensures both the rate of collateralization and the RSV peg. Within the Reserve network, it is primarily responsible for the following functions:
- It keeps the RSV aimed price value at $1 throughout the transaction;
- It grants voting rights to its holders and the ability to decide on the protocol’s future development.
Moreover, the RSR is a volatile cryptocurrency token that, in contrast to the RSV stablecoin, has been distributed to investors. The Reserve initiative is financed with the money received from the returns of the RSR sales.
The RSR token also recapitalizes the protocol if the RSV token depreciates to the point that it cannot collateralize any existing RSV tokens completely. Owing to this impact, the circulation of RSR tokens falls if there is a rise in the volume of RSV supply. This occurs because the system only allows those who have RSR to take advantage of the purchasing and selling options it provides.
The Reserve Stable Coin Vault (RSV)
The Reserve Right Token Vault (RSV) is the second token in the Reserve Right system. This stablecoin coin operates as a borderless global digital currency accepted all over the world. Hence, RSV can be used by anybody, anywhere, to make and receive payments and store value. As an alternative to the dollar or other similarly stable fiat currencies, the RSV is one of the most stable cryptocurrencies you can hold or spend.
The RSV stablecoin is supported by a set of four cryptocurrencies: Ethereum (ETH), True USD (TUSD), USD Coin (USDC), and the Paxos Standard (PAX). The amount of collateral tokens currently available is limited, but expansion plans call for a wider variety of assets like fiat money and stocks to be accepted as collateral.
For the time being, 1 RSV is equivalent to $1. When the Reserve Vault matures, the RSV value obtained from the reserved collateral will further decentralize the protocol. Therefore, the RSV serves three primary purposes:
- Facilitates the low-cost transfer of funds (tokens) across international borders;
- Protects investors’ savings from hyperinflation;
- Keeps track of all the capital gains from the RSV token’s collateral.
The RSV Vault
The Vault functions as a smart contract, and its purpose is to store and pool the assets used as security for the RSV token.
Also, most of the money in the Vault comes from the sale of Reserves that have been minted. Whenever an RSV is minted and sold for Vault holdings, the full amount of the sale is put in the Vault.
But Vault assets won’t always stay the same in value, so the Vault Manager has to increase the number of Reserve tokens whenever the Vault levels drop or increase the number of Vault tokens once the Vault levels get too high.
Basically, the function of the Vault Manager is to maintain a certain portfolio of assets that secure the value of the RSV token. Rebalancing happens in two ways: when the Reserve Manager makes trades and when governance rebalances the portfolio every three months.
Considering how volatile these underlying assets are, the portfolio needs to be rebalanced every so often to ensure that risk is spread out.
What Are Reserve Rights (RSR) Tokens Used For?
The RSV and RSR tokens interact to provide a secure and efficient user experience. They’re built on the Ethereum blockchain and present a whole new method for users to preserve the stablecoin value. Because of its fixed exchange rate with the US dollar, the RSV stablecoin must maintain a value of $1.
If the price of one RSV token drops below $1, the protocol will automatically buy more RSV tokens, bringing the value of the RSV token back to $1 on the marketplaces. When the price of the stablecoin rises over the desired value of $1, the protocol sells newly minted or surplus RSV in exchange for tokenized assets or RSR.
If the value of the assets backed by the Reserve protocol drops below a certain threshold, the RSR token is used to recapitalize the market and keep the RSV token in circulation. Because of this, if there is a rise in the quantity of RSV tokens, there is a corresponding drop in the amount of RSR tokens.
Where to Buy Reserve Rights Tokens (RSR)?
Reserve Rights (RSR) is a very popular token that consistently demonstrates high levels of liquidity. You can purchase and trade it on a number of the industry’s most reputable cryptocurrency trading platforms, including Binance, OKX, and Huobi Global.
In addition, RSR can be traded against a number of the market’s most prominent digital currencies, including Ethereum (ETH), Bitcoin (BTC), and Tether (USDT), as well as the U.S. dollar (USD) on most of these markets.
Where to Store the Reserve Rights Tokens?
The safest and most secure method for keeping RSR is to use a hardware wallet. A hardware wallet provides cold storage, or offline storage, and protects token holders from online attacks and thefts. Therefore, look for digital hardware wallets that support ERC-20 tokens, such as Ledger Nano X or Ledger Nano S.
How Long Has Reserve Rights (RSR) Been Around?
Nevin Freeman, CEO of the Reserve crypto initiative and a venture capitalist with three previous startup credits to his name, created the Reserve Rights token in 2019 and is responsible for its introduction to the market.
Since its Initial Coin Offering (ICO) on the Huobi Prime platform, the team behind the Reserve protocol has significantly expanded and currently includes over two dozen professionals. These staff members encompass developers, engineers, as well as legal and compliance specialists.
Coinbase Ventures, Sam Altman, head of venture money firm Y Combinator, and PayPal co-founder Peter Thiel are just a few high-profile investors who have expressed trust in the platform and are backing it.
What’s Controversial About Reserve Rights (RSR)?
It is unclear whether the team will acquire sufficient finance to accomplish its aims, despite the support of several individual investors and capital ventures.
How Many RSR Coins Are There?
The total number of Reserve Rights tokens that will ever be created is 100,000,000,000,000, with only 42,302,323,974 currently in circulation. The RSR token was released with a fixed amount of 100 billion tokens, although the company behind the Reserve protocol has indicated that this number may well be increased or decreased in the future.
The Reserve Rights token was released with a total quantity of 6.85 billion tokens, of which 3 billion were distributed to customers who took part in the Huobi Prime initial exchange offering (IEO). Another 2.85 billion were made available as project tokens, while 1 billion RSR was given out to individual investors.
Can RSR Be Mined?
The Reserve Rights token is a digital asset that utilizes the ERC-20 standard and is decentralized on the Ethereum network. As a result, the project was initially developed to be safeguarded by the Proof of Work (PoW) consensus method, which was supported by a decentralized organization of Ethereum miners.
Given that the entire supply of RSR was pre-mined and then locked up and is just now being gradually released to the public, RSR mining is no longer taking place.
On the other hand, the Ethereum network has just transitioned from Proof of Work to Proof of Stake, enabling it to create quicker transactions with lower transaction fees more efficiently.
In contrast to the PoS transaction verification mechanism, the previously employed Proof-of-Work (PoW) is a resource- and power-intensive protocol that necessitates a large amount of computer power to mine each transaction data block.
Market Cap and Price History of Reserve Rights (RSR)
According to data provided by CoinMarketCap, the current price of Reserve Rights as of right now is $0.004118, with a trading volume of $9,551,189 over the past 24 hours. Please note that real-time adjustments are made to the RSR price when converted to USD.
The price of Reserve Rights has decreased by 1.09% during the past twenty-four hours. The current position on CoinMarketCap is #161, and the live market cap is currently equal to $174,193,769.
Biggest Competitors of Reserve Rights (RSR)
The Reserve Rights token faces competition from a broad array of other cryptocurrencies and stablecoins backed by USD. This list includes Binance USD (BUSD), TerraUSD (UST), Tether (USDT), USD Coin (USDC), and True USD (TUSD).
Though RS protocol currently boasts a market valuation of $420 million, the company still has a significant distance to travel before it can be considered the dominant player in the stablecoin industry.
What Does the Reserve Rights (RSR) Project Road Map Look Like?
The Reserve Rights team working on this crypto project wants to add more assets like commodities, stocks, and foreign currencies to back its stablecoin.
Pros and Cons of Reserve Rights (RSR)
- Asset-supported cryptocurrency;
- Maintains its stability independent of the value fluctuations of the US dollar;
- Supported by some of the most prominent cryptocurrency exchanges;
- Offers a secure and strong merchant ecosystem for the unbanked, especially in emerging economies.
- Has fierce competition in the stablecoin market.