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The Reserve Rights token is an Ethereum network-based ERC-20 asset. Since a network of Ethereum miners supports the Proof of Work consensus technique, the project is currently secured by it.
However, PoW is time- and energy-consuming, which is why Ethereum is transitioning to a Proof of Stake consensus, bringing with it less expensive and quicker transactions to the network. PoS relies on an algorithm consensus mechanism that selects a node to win transaction blocks as opposed to PoW, which uses a network of miners to solve a mathematical problem in order to process transactions and get rewards.
A few of the problems stopping the crypto business from becoming widely used are volatility, inflation, a lack of crypto acceptance, and low merchant trust. The Reserve Rights token, which offers a dual-token structure, aims to change this.
The RSR token is expanding the use of low-friction transactions to a global audience at a crucial juncture in the development of cryptocurrency. Additionally, since it employs a peer-to-peer model rather than a traditional financial system, there is no need for governmental monitoring.
The Reserve Rights token is what, then? You’ve come to the proper place if you’ve never heard of it. Discover what the Reserve Rights team is working to expand the market by reading on.
The development of Bitcoin occurred more than ten years ago. Since then, additional coins and blockchain protocols have emerged, but scaling problems are still plaguing the market and preventing it from gaining mainstream adoption. The Reserve protocol team launched a dual-token stablecoin platform in May 2019 following a successful initial exchange offering on the Huobi Prime platform. They are hoping that it will scale the sector to widespread adoption.
In contrast, a stable cryptocurrency would be more widely used as a “store of value, medium of exchange, and [be the] standard of deferred payment,” as stated in the protocol’s whitepaper. This is because “the volatility of existing cryptocurrencies greatly reduces their usefulness.” The Reserve protocol is supported by three tokens: the Reserve stablecoin (RSV), the Reserve Rights token (RSR), and collateral tokens, which, in accordance with the Reserve protocol, are other assets held by the Reserve smart contract in order to support the Reserve token stablecoin’s value.
RSV was introduced in 2019 and is supported by many tokenized assets. Since it maintains parity with the US dollar, 1 RSV is equivalent to $1. The Reserve stablecoin’s goal is to give poor nations a dependable and strong ecosystem and support less expensive remittances. RSV is kept in the Reserve vault, which stands in for the smart contract platform. Holders of the Reserve Rights utility token can vote on ideas for governance. RSR, in contrast to RSV, is erratic and is utilised to keep RSV at $1.
The Ethereum blockchain is the home of Reserve tokens, and the Reserve protocol aims to introduce a novel method for users to preserve stablecoin value. It must maintain its $1 value because it is tied to the US dollar.
The protocol purchases additional RSV if the price of the token drops below $1 in order to raise it back to $1 on exchanges. The protocol sells freshly created or surplus Reserve stablecoins for tokenized assets or RSR if the goal value rises over $1, helping to bring the stablecoin’s price back down to $1.
If the assets kept with the Reserve protocol decline and can no longer ensure the existence of the RSV, the job of the RSR token is to recapitalize the market. Consequently, the quantity of RSR decreases if the supply of the RSV token increases.
Nevin Freeman, who is the CEO of the Reserve project and a successful entrepreneur who cofounded three businesses, founded the Reserve Rights token, which became live in 2019. Matt Elder, who now serves as CTO and was previously employed by Google, the app search engine Quixey, and the Linux Standard Base, is the other project cofounder.
The Reserve protocol team has expanded significantly since its IEO on the Huobi Prime platform and now includes more than twenty members, including developers, engineers, and legal and compliance specialists. The platform has also gotten a lot of support from well-known financiers including Coinbase Ventures, Sam Altman, head of seed-stage firm Y Combinator, and PayPal co-founder Peter Thiel.
Because the stablecoins are backed by a variety of cryptocurrencies that are controlled by smart contracts, the Reserve protocol is distinctive. This contrasts with other stablecoins that are managed in a bank account that is under the authority of a stablecoin issuer and are often backed by fiat currencies like US dollars.
The stablecoin is backed by the cryptocurrencies Ethereum, USD Coin (USDC), True USD (TUSD), and Paxos Standard (PAX). To make a more diverse selection, including fiat currency and stocks, there are plans to increase the number of collateral tokens.
The Reserve protocol’s Reserve Rights token, which is used to increase or reduce the price of the stablecoin if its value falls below or rises over $1 owing to its arbitrage system, is another distinctive characteristic.
The token is given significant value because of how useful it is in the dual-token system, which helps the Reserve protocol accomplish its objectives. Three goals are accomplished with the team’s RSV token: hyper-inflation is eliminated, a user-friendly and robust ecosystem is established, and a stable coin is provided.
The arbitrage minting and stability procedures, which are excellent countermeasures against inflation and hyperinflation, connect the Reserve Rights token and the Reserve stablecoin. The Reserve stablecoin and several such coins are ushering in an era free from inflation. Additionally, the stablecoin is able to shield itself from governmental regulations and governance directives because to the variety of assets backing it.
The total supply of Reserve Rights tokens is 100,000,000,000, and there are presently 42,302,323,974 RSR in use. The Reserve protocol team has said that this quantity may fluctuate, despite the fact that the RSR token was initially released with a fixed amount of 100 billion tokens.
3.85 billion Reserve Rights tokens, or 6.85 billion in total, were distributed to Huobi Prime IEO participants when the Reserve Rights token first went into circulation. 2.85 billion more were made available as project tokens, while 1 billion RSR were given out to individual investors.
According to the project’s website, the protocol’s initial production will operate in a centralised manner. The Reserve team continues by pointing out that as the network expands, certain aspects of the protocol will go into the blockchain when the founding team releases control. The network will eventually be totally decentralised.
There are three stages that will to place for this to occur. Which are:
The project is backed by a modest number of collateral tokens, each of which is a tokenized US $1, during the centralised phase.
The Reserve token is stabilised by a fluctuating basket of assets in a decentralised manner throughout this phase, although price parity with the US dollar is still maintained.
The autonomous phase, the third and final stage, is when the Reserve token ceases to be tied to the US dollar and continues to be stable despite changes in the US dollar’s value.
Volatility is the key issue that the RSV and RSR tokens are seeking to address. This is one obstacle stopping the cryptocurrency market from becoming widely adopted, and it is a problem that many crypto assets experience. Due to the potential for a market slump, businesses are reluctant to accept cryptocurrency payments, and individuals are wary of putting too much money into a single coin for fear of suffering a big loss.
The Reserve protocol’s launch intends to address this by delivering a reliable store of value, a medium of exchange, and a payment method that may end up being the preferred choice.
RSR can be saved in any wallet that supports Ethereum because it is an ERC-20 token, and the kind you select will probably depend on what you intend to use it for and how much storage you need.
The most secure way to store bitcoins with offline storage and backup is with hardware wallets, also known as cold wallets, like Ledger or Trezor. They can be more expensive and may require more technical expertise. As a result, they might be more suited to holding more RSR for more seasoned users.
Software wallets are an additional choice that are both free and simple to use. They might be custodial or non-custodial and can be downloaded as desktop or smartphone apps. With custodial wallets, the service provider is in charge of managing and backing up the private keys on your behalf. Non-custodial wallets keep the private keys on your device using safe components. Although useful, they are thought to be less secure than hardware wallets and may be better suited to individuals with less experience or lesser quantities of RSR.
Online wallets, often known as web wallets, are also cost-free, simple to use, and available from a variety of devices via a web browser. However, they are regarded as “hot wallets” and might not be as secure as hardware or software alternatives. You should choose a trusted company with a solid reputation who has experience in security and custody because you are probably entrusting the platform to manage your RSR. They are therefore best suited for people who hold fewer coins or engage in more frequent trading.
Your Reserve Rights tokens can be safely stored and exchanged with Kriptomat’s secure storage service. When you store your RSR tokens with Kriptomat, you get user-friendly functionality and enterprise-grade security.
When you select our safe platform as your storage solution, buying and selling RSR and exchanging it for any other cryptocurrency may be done in a matter of seconds.
There is no ongoing RSR mining because the entire supply of RSR was premined, however the majority of it was locked up and is being unlocked gradually. Ethereum, which currently employs the Proof of Work consensus algorithm, powers the Reserve Rights coin. However, the Ethereum network is in the process of switching to Proof of Stake, which will allow it to issue transactions more quickly and efficiently while also charging lower transaction costs. This contrasts with PoW, which uses a lot of energy and needs a lot of processing power to mine each transaction block.
The Reserve protocol’s dual-token structure aims to increase the crypto market’s heights by lowering volatility, which boosts confidence among investors and traders. The Reserve project, which only began in 2019, has already made significant progress and has a lot more potential. The team behind it is optimistic they will succeed in their endeavours.
Reduced inflation, cheaper remittances, and increased corporate confidence are all benefits of the Reserve protocol. Additionally, it provides a mobile payment app and is listed on a number of exchanges.
Despite stiff competition from competing stablecoins, the Reserve protocol is expanding because it keeps its eye on the prize.
In nations with significant inflation rates, like Venezuela and Argentina, the Reserve app has been used largely.
The team is preparing to introduce the entire Reserve protocol mainnet, which might affect the maximum supply of RSR. There is no set date for the launch as of July 2021, however it is expected to take place in 2021.
It’s simple to purchase Reserve tokens by going to Kriptomat’s Reserve Rights Token buying page and selecting your favourite payment method.
You can quickly sell your RSR tokens if you already own them and keep them in your Kriptomat exchange wallet by navigating the interface and selecting your preferred payment method.
Coin prices will experience upswings and downswings, as with everything else in the cryptocurrency industry. This is expected given that individuals continue to acquire and sell assets on a global scale at all times. Consequently, as a result of increased social media interest and new product innovations, the market price of RSR will fluctuate.