Is RSR Worth Investing In?

The design of Reserve is quite unique, as it implements corresponding adjustment mechanisms in both the price and value of the stablecoin. In a rising market trend, almost all tokens appreciate, leading the system to use RSR to purchase from the RSV minting pool, resulting in the destruction of RSR. Due to RSR's deflationary model, its price is expected to rise with relative certainty. However, this increase is neither linear nor exponential, as once the price of RSR rises, the rate of RSR destruction slows down, thereby reducing the deflation rate of RSR and making its price increase moderate.

In a declining market trend, almost all tokens depreciate, causing the system to mint more RSR, which increases the supply of RSR and subsequently lowers its price. When the prices of various market tokens decline rapidly, RSR also gets minted quickly, leading to a rapid drop in RSR's price, where price growth does not have a compounding effect, but price decline has an accelerating effect.

Only when the market capitalization of RSR maintains a good proportional relationship with the market capitalization of RSV will the price fluctuations of RSR not be too extreme, nor will they affect the stability of RSV. In a declining market, if the market cap of RSR is significantly higher than that of RSV, even a small amount of minting is unlikely to have a major impact on the price of RSR, nor will it trigger market panic. $RSR