Reserve plans to reduce RSR issuance by mimicking Bitcoin’s emission curve
According to TechFlow, the decentralized stablecoin protocol Reserve has announced a new issuance plan for its governance token RSR. The plan will mimic Bitcoin's emission curve and aims to provide a more predictable and sustainable supply growth for RSR.
RSR will adopt a deterministic emission schedule that mimics Bitcoin's emission curve starting at the 50% circulating supply point. The new schedule will replace the previous "Slower Wallet" system, which allowed the withdrawal of 1% of the total RSR every four weeks. The new schedule will reduce the amount of RSR that can be issued per unit time.
Currently, about 50% of the total RSR supply has been issued, and the remaining 50% will be issued according to the new plan. The initial weekly withdrawal amount is 0.19% of the total supply (190 million RSR), and the weekly withdrawal amount will decrease by 99.6157%.
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3. **Yield Generation** - **RTokens**: In addition to providing stability, RTokens can generate yields from the underlying assets. This feature allows users to earn returns while holding RTokens, making them more attractive for long-term investment and savings. - **Traditional Stablecoins**: While some traditional stablecoins offer interest-bearing accounts, the yields are generally lower compared to the potential returns from RTokens. Traditional stablecoins are primarily used for stability and transactional purposes. #### 4. **Permissionless Creation** - **RTokens**: The Reserve Protocol allows anyone to create and configure their own asset-backed currency (RToken) without needing coding skills. This democratizes the creation of stablecoins and opens up opportunities for a wide range of users, including DeFi developers and traditional financial institutions. - **Traditional Stablecoins**: The creation of traditional stablecoins is typically limited to centralized entities with significant resources to manage reserves and comply with regulations.
#### 1. **Transparency and Decentralization** - **RTokens**: RTokens provide real-time visibility into their reserves on the blockchain, ensuring transparency and allowing users to verify the backing of the stablecoins at any time. They are managed by autonomous smart contracts, which eliminate the need for intermediaries and enhance trust through decentralized governance.
- **Traditional Stablecoins**: While some traditional stablecoins, like USDC, offer regular audits, they remain centralized and rely on the trustworthiness of the issuing entity for reserve management.
#### 2. **Stability and Security** - **RTokens**: RTokens are designed to be stable and secure, backed by a basket of yield-bearing assets and overcollateralized by RSR token stakers. This structure provides additional security and stability, with on-chain proof of reserves available 24/7.
- **Traditional Stablecoins**: Traditional stablecoins, such as Tether (USDT) and USD Coin (USDC), are typically backed by fiat currencies or commodities. While they offer stability by pegging to these assets, they can be subject to risks related to the centralization and management of reserves. #rwa #rsr
The Reserve Protocol represents a significant step towards creating a decentralized, transparent, and stable financial system. By enabling the creation of asset-backed stablecoins and providing robust governance mechanisms, it offers a promising alternative to traditional financial systems and volatile cryptocurrencies. The success of the Reserve Protocol will depend on its ability to attract a diverse and engaged community to build high-quality collateralized asset baskets and governance structures.
### Reserve Protocol Governance and Security The Reserve Protocol's governance is decentralized, with RSR stakers having the power to propose and vote on changes to the protocol. This includes decisions on collateral baskets, revenue distribution, and emergency collateral deployment. The protocol has undergone multiple audits to ensure the security and reliability of its smart contracts.
RTokens are primarily used by DeFi platforms, fintech dApps, and on-chain treasuries. However, the potential use cases extend beyond these areas to include rewards programs, video games, and even government applications. The Reserve Protocol aims to increase the adoption of stable and safe currencies, providing a reliable store of value and medium of exchange, especially in regions with high inflation.
3. **Permissionless Creation**: - The Reserve Protocol allows anyone to create and configure their own asset-backed currency (RToken) without needing coding experience. This opens up opportunities for DeFi developers, entrepreneurs, and even traditional financial institutions to deploy their own stablecoins. 4. **Mitigating Depeg Risk**: - The protocol employs a 1:1 minting and redemption mechanism, ensuring that RTokens are always pegged to the value of their collateral basket. This mechanism, along with on-chain proof of reserves, guards against depeg risks and ensures the stability of RTokens.
### Reserve Protocol Key Features (part.1) 1. **Transparency and Decentralization**: - **Transparency**: The Reserve Protocol allows users to see all reserves on-chain at all times, providing real-time visibility into the backing of the stablecoins issued by the protocol. This transparency ensures that users can verify the stability and security of their assets[1]. - **Decentralization**: Autonomous smart contracts remove the need for intermediaries, enabling users to verify public code and corroborate proof of reserves. This creates a trustless environment where users have control over their assets through governance mechanisms. 2. **RTokens and RSR Tokens**: - **RTokens**: These are stablecoins backed by a basket of yield-bearing assets and overcollateralized by RSR token stakers. RTokens can be used as stablecoins, on-chain savings accounts, or tokenized indices. They are designed to be stable and secure, with proof of reserves available on-chain 24/7. - **RSR Tokens**: Reserve Rights (RSR) tokens are used for governance and overcollateralization. RSR holders can stake their tokens to any RToken, providing additional collateral and earning a share of the RToken's yield. RSR tokens also give holders the power to vote on governance proposals. #rwa #rsr
Overview of Reserve Protocol The Reserve Protocol is a decentralized platform designed to create and manage asset-backed stablecoins, known as RTokens. It aims to provide a stable and scalable form of digital currency that can be used globally, addressing issues of volatility and trust in traditional financial systems.
Unlike other stablecoins typically backed by US dollars (USD) held in reserve in a bank account controlled by the issuer of the stablecoin or a trusted custodian, reserve stablecoins are backed by a basket of cryptocurrencies managed by smart contracts.
This basket initially consists of Ethereum Stablecoin assets, including USD Coin (USDC), True USD (TUSD), and Paxos (PAX), but there are plans to later move to a more diversified basket, which may eventually include fiat currencies, securities, commodities, and asset types. Complex, such as synthetics and derivatives.
Arguably the main defining feature of the RSR cryptocurrency is that it is minted and sold when the RSV stablecoin loses its peg to the US dollar. The funds generated from the sale of the RSR token are used to replenish the RSV collateral pool, while when the RSV is valued at more than $1, the additional collateral will be used to buy and burn the RSR token from the secondary market, reducing the supply.
I have been watching it for a while. #RSR is doing something. More posts talking about it. More videos. More search’s. Today it’s still very subtle but I believe something is happening.
#RSR is a nice asset in a portfolio because the Reserve Protocol is trying to solve an IRL problem. That’s for me one of the main relevant information to look for any crypto. Are we trying to solve a real problem ? Yes ! WAGBI !