What Is the Reserve Rights Token?
Over a decade ago saw the creation of Bitcoin. Subsequent coins and blockchain protocols have followed since, but the industry is still struggling with scaling issues that are preventing the market from achieving widespread adoption. Launched in May 2019, after a successful initial exchange offering on the Huobi Prime platform, the team behind the Reserve protocol has created a dual-token stablecoin platform they hope will scale the industry to global usage.
According to the protocol’s whitepaper, “the volatility of existing cryptocurrencies significantly reduces their usefulness,” but one that is stable would have wider use as a “store of value, medium of exchange and [be the] standard of deferred payment.” With the Reserve protocol, there are three tokens that help power it: the Reserve stablecoin (RSV), the Reserve Rights token (RSR), and collateral tokens, which, according to the Reserve protocol, are other assets held by the Reserve smart contract so that they can back the value of the Reserve token stablecoin.
RSV launched in 2019 and is backed by a basket of tokenized assets. It maintains parity with the US dollar, meaning 1 RSV is worth $1. The aim of the Reserve stablecoin is to provide a reliable and robust ecosystem for developing countries and aid cheaper remittances. The Reserve vault, which represents the smart contract platform, holds RSV. The Reserve Rights token is a utility token and enables holders to vote on governance proposals. Unlike RSV, RSR is volatile and is used to stabilize RSV at $1.
How Does Reserve Rights Token Work?
Reserve tokens live on the Ethereum blockchain and the aim of the Reserve protocol is to implement an innovative way for users to maintain stablecoin value. As it’s pegged to the US dollar, it needs to hold its $1 value.
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If the RSV token falls below $1, then the protocol buys more RSV, bringing the price of the token back up to $1 on exchanges. If the target value goes above $1, then the protocol sells newly minted or in-excess Reserve stablecoins for either tokenized assets or RSR, helping to push the price of the stablecoin back down to $1.
The role of the RSR token is to recapitalize the market if the assets held with the Reserve protocol drop and can no longer guarantee the RSV in existence. Consequently, when there is an increase in the supply of the RSV token, there is a decrease in the number of RSR.
Who Are the Founders of the Reserve Rights Token?
The Reserve Rights token launched in 2019 and was founded by Nevin Freeman, who is also the CEO of the Reserve project and a successful entrepreneur, having cofounded three companies. The project’s other cofounder is Matt Elder, who takes on the role of CTO and previously worked for Google, app search engine Quixey, and the Linux Standard Base.
Since its IEO on the Huobi Prime platform, the team behind the Reserve protocol has grown considerably and now consists of over two dozen members, including developers, engineers, and legal and compliance staff. The platform has also received significant backing from prominent investors, such as Coinbase Ventures; Sam Altman, the president at seed money startup Y Combinator; and Peter Thiel, the co-founder of PayPal.
What Makes Reserve Rights Token Unique?
The Reserve protocol is unique because the stablecoins are backed by a basket of cryptocurrencies, which are managed by smart contracts. This is in contrast to other stablecoins that are typically backed by fiat currencies such as US dollars, which are managed in a bank account that is controlled by a stablecoin issuer.
The cryptocurrencies that back the stablecoin consist of Ethereum, USD Coin (USDC), True USD (TUSD), and the Paxos Standard (PAX). However, there are plans to increase the number of collateral tokens so that there is a more varied range, including fiat currencies and securities.
Another unique feature of the Reserve protocol is the fact that its Reserve Rights token is used to increase or decrease the price of the stablecoin if its value goes below or above $1 due to its arbitrage system.
What Gives Reserve Rights Tokens Value?
Significant value is given to the token due to its utility within the dual-token system, which aids the Reserve protocol to reach its goals. With the team’s RSV token, it achieves three things: it removes hyper-inflation, it creates an accessible and robust ecosystem, and it delivers a stable coin.
Both the Reserve Rights token and the Reserve stablecoin are interlinked through the arbitrage minting and stability processes, which are ideal solutions to inflation and hyperinflation. Stablecoins such as the Reserve stablecoin are bringing in a new era that’s free from inflation. And thanks to the stablecoin’s diverse asset backing, it’s also able to protect itself from government regulation and governance decrees.
How Many Reserve Rights Token (RSR) Coins Are in Circulation?
Reserve Rights has a max supply of tokens and there are currently RSR in circulation. Even though the RSR token was launched with a fixed supply of 100 billion tokens, the team behind the Reserve protocol has said that this supply may change.
The Reserve Rights token launched with a circulating supply of 6.85 billion tokens, of which 3 billion were given to users taking part in the Huobi Prime IEO. A further 2.85 billion were released as project tokens and 1 billion RSR were distributed to private investors.
Other Technical Data
The initial production of the protocol will function in a centralized manner, according to the project’s website. The Reserve team goes on to note that as the network grows, parts of the protocol will migrate on-chain as control is released by the founding team. Eventually, the network will be completely decentralized.
For this to happen, there are three planned phases. These are:
- The centralized phase: This is when the project is backed by a small number of collateral tokens, each of which is a tokenized US dollar.
- The decentralized phase: This is where the Reserve token is stabilized by a shifting basket of assets in a decentralized way, but still maintains price parity with the US dollar.
- The independent phase: The final of the three phases is when the Reserve token is no longer pegged to the US dollar and remains stabilized regardless of variations in US dollar value.
How Is The Reserve Rights Token Network Secured?
The Reserve Rights token is an ERC-20 asset based on the Ethereum network. As a result, the project is currently secured through the Proof of Work consensus mechanism, which is backed by a network of Ethereum miners.
PoW is time-consuming and energy inefficient, though, which is why Ethereum is in the process of upgrading to a Proof of Stake consensus, bringing with it cheaper and faster transactions to the network. Unlike PoW, which relies on a network of miners to solve a mathematical problem to process transactions and receive rewards, PoS relies on an algorithm consensus mechanism that picks a node to win transaction blocks.
How To Use the Reserve Rights Token
The main problem that the RSV token and the RSR token are attempting to solve is volatility. This is one barrier that is preventing the crypto market from gaining widespread adoption and is an issue that many crypto assets face. As a result, merchants are reluctant to accept crypto payments because of the threat of a market downturn whereas users are fearful of investing too much into one coin in case they end up losing a significant amount of money.
The introduction of the Reserve protocol aims to solve this by providing a stable store of value, a medium of exchange, and a way of paying that could become the preferred method.
How To Choose a Reserve Rights Token Wallet
As an ERC-20 token, RSR can be stored in any wallet that supports Ethereum and the type you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of RSR for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of RSR or more novice users.
Online wallets or web wallets are also free and easy to use and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your RSR, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your Reserve Rights tokens without any hassle. Storing your RSR tokens with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling RSR, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Reserve Rights Token Mining
The total supply of RSR was premined but most of it was locked up and is being released gradually so there is no ongoing RSR mining. The Reserve Rights token runs on Ethereum, which currently uses the Proof of Work consensus mechanism. However, the Ethereum network is in the process of migrating over to Proof of Stake, which will enable it to produce faster transactions with low transaction fees in a more efficient manner. This is unlike PoW, which is an energy-intensive process that requires a significant amount of computing power to mine for each transaction block.
The dual-token system of the Reserve protocol is attempting to help push the crypto market to greater heights by reducing volatility, which gives more confidence to merchants and investors. Despite having only launched in 2019, the Reserve project has already achieved a lot and has much more potential, and the team behind it is confident they will achieve their goals.
The Reserve protocol is bringing cheaper remittances, lower inflation, and trust among businesses. It’s also listed on several exchanges and offers a mobile payment app.
It faces tough competition from other stablecoins, but despite this, the Reserve protocol is growing as it continues to focus on its end product.
Reserve Rights Token FAQ
Who Is Using Reserve?
The Reserve app has seen particularly strong adoption in countries with high inflation rates such as Venezuela and Argentina.
Will Reserve Rights Remain on Ethereum?
The team is planning a full Reserve protocol mainnet launch, which could lead to a change in the max supply of RSR. The launch is slated to occur sometime in 2021, but as of July 2021, there is no specific timeframe.
How To Buy Reserve Rights Tokens
Buying Reserve tokens is as easy as visiting Kriptomat’s how to buy Reserve Rights Token page and choosing your preferred method of payment.
How To Sell Reserve Rights Token
If you already own RSR tokens and hold them in a Kriptomat exchange wallet, you can easily sell them by navigating the interface and choosing your desired payment option.
Reserve Rights Token Price
As with anything in the crypto market, there will be periods of growth and periods of decline with coin prices. This is natural as people worldwide continue to buy and sell assets at any given moment. As a result, the market price of RSR will rise and fall due to increased social media attention and new product developments.
The current Reserve Rights Token price is EUR.
The 24-hour trading volume of RSR is EUR. RSR is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of RSR and a max supply of RSR.
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