Reserve Rights token (RSR) is an asset for developing countries with high inflation. Launched in May 2019, it has significant backing from top investors. If you wish to learn about Reserve and its RSR token, keep reading. We’re going to cover all relevant information about the project.
KEY TAKEAWAYS
► RSR is both a governance and utility token within the Reserve Protocol, ensuring the stability of the Reserve stablecoin (RSV).
► It maintains RSV’s peg to the U.S. dollar through arbitrage opportunities, allowing traders to profit from price discrepancies.
► RSR holders can vote on proposals affecting the Reserve Protocol, influencing its development and policies.
► RSR has gained adoption in countries with high inflation, such as Venezuela and Argentina, offering a potential hedge against currency devaluation.
What is RSR coin?
RSR is a token that is part of the Reserve Project, which is a flexible pool of stablecoins that includes the native stablecoin RSV, USDC, and DAI. It reduces risk through diversification and decentralized governance. Simultaneously, it protects users’ assets, acts as a cross-border transfer asset, and serves as a means of payment with merchants.
RSV is a stablecoin that functions as a stable fiat currency, with various forms of collateral backing it. The asset ensures the stability of the Reserve token (RSV).
Nevin Freeman co-founded the Reserve Project and is its current CEO, while Thomas Mattimore heads the Reserve Protocol. The project has an ecosystem of companies that perform different functions. These include ABC Labs, Confusion Capital, MobileCoin, and Best Friend Finance.
How does the Reserve Protocol work?
The RSR coin serves two distinct purposes for the Reserve Project. Primarily, it ensures the price stability of the Reserve token (RSV). Specifically, it guarantees the collateralization rate and peg of the RSV.
The RSR coin also serves as the governance token for the project. It gives holders the power to vote on proposals that can directly affect the project. The protocol has been implemented in Solidity and exists on Ethereum, Base, and Arbitrum.
RSR also ensures a stable price by working with RSV and utilizing unique RSR “tokenomics.” It does this by using a system of arbitrage opportunities to keep the price stable at $1.
For example, if the price of RSV falls below the dollar, arbitrageurs can buy back $1 worth of tokens. Alternatively, if the price exceeds $1, arbitrageurs can purchase tokens and sell them until the $1 peg is reclaimed.
Users can redeem their assets at a 1:1 ratio and never have to worry about any fees when minting or redeeming any collateral.
Reserve Protocol features
RPay
The Reserve Protocol’s RPay app allowed users to make transfers and payments across multiple countries, primarily within Latin America. Through RPay, customers could pay, exchange, send, and receive money, even in regions with significant banking restrictions, such as Venezuela, which faces substantial U.S. sanctions.
However, due to banking challenges — notably the loss of its main U.S. banking partner as a result of Operation Chokepoint 2.0 — RPay needed to reconsider its structure. This led to a strategic pivot, and RPay eventually evolved into a new platform, Ugly Cash. Ugly Cash is produced by Best Friend Finance under the leadership of CEO and co-founder Gabo.
RTokens
Users themselves can create RTokens. RTokens is a blanket term for any stablecoin created on the Reserve Protocol by users. They are collateralized by a combination of ERC-20 tokens and Reserve Rights Staking. Users need only to interact with the Reserve Protocol’s app via factory smart contracts to deploy their own tokens.
RTokens give users the ability to customize their tokens to some degree. However, there are some restrictions and types of ERC-20 tokens that the protocol does not support. These include:
- Rebase tokens
- Tokens with a fee mechanism for trades
- EC-777 tokens
- Tokens with multiple addresses
Governance
Each RToken can have its own governance model; however, Reserve Protocol provides a default model for users. This model is known as Governor Anastasius. It is a modified version of OpenZeppelin Governance. Some of these specifications include:
- The amount of RSR tokens a user holds determines their voting weight.
- RSR holders can propose, discuss, and vote on changes to the protocol.
- Anyone can propose changes to modify or an RToken.
- RSR holders can delegate their voting rights to other addresses.
- The governance process has three steps: proposal, vote, and execution.
- A timelock is imposed once a proposal is approved, which gives users the ability to make decisions before the changes are implemented
Reserve Rights token (RSR)
The Reserve Right token (RSR) is the governance and utility token for the Reserve project. It is an ERC-20 token. RSR has a circulating supply of 56 billion RSR and a max. supply of 100 billion RSR. The remaining 49.4 billion tokens are held by the Slow and Slower Wallets.
The Slow Wallet is a wallet controlled by the Reserve project team and used to fund adoption. Confusion Capital manages the funding for the Reserve Ecosystem, including Best Friend Finance and ABC Labs (which focuses on core protocol development).
The Reserve Protocol developments
Due to many factors and its time in the crypto market, the RSR has had many developments throughout the years. In 2022, Reserve focused on improving security by commissioning a series of audits.
Beginning with an audit by Trail of Bits, Reserve followed up with additional security reviews by Solidified, Ackee, and Halborn. This continued into 2023 with audits by Code4rena and one by Trust Security in 2024.
By 2024, Reserve also ramped up community interaction and innovation. The Monetarium Conference brought together thought leaders to discuss developments in DeF.
In addition, Nevin Freeman provided insights on the future of RSR emissions, addressing possible funding needs to support Reserve’s mission. Another key addition in 2024 was the “Ugly Cash Earn” loyalty program, launched by the Best Friend Finance team. This program allows users in the U.S. and Latin America to earn yields on their eUSD holdings.
Is RSR coin a good investment?
The Reserve Protocol may be a good investment, due to increasing inflation rates worldwide and the gradual devaluation of global currencies. Users are looking for alternative currencies to help bring stability to their finances.
RSR has seen mass adoption in Venezuela and Argentina, regions severely affected by hyperinflation. Analysts expect that as more countries face inflation, they will embrace stablecoins and alternative platforms. This may lead to a rise in price and value for RSR.
Overall, the Reserve Protocol provides a stable store of value, medium of exchange, and standard of deferred payment to the market. Also, due to the increase in interest in stablecoins of all kinds in the crypto space, the adoption of them is increasing rapidly, with more platforms using them every day to help bring balance and stability to their operations.
Being a stablecoin that has real-world adaptation and interest from affected countries, RSR coin has proven itself to be a leading asset and one that brings tangible benefits and value to users around the world.
Does RSR have a future?
The Reserve Project is a platform that has a lot of popular features and products. It allows the average user to create their own crypto-collateralized stablecoins, establish governance protocols around their tokens, and make payment across borders with ease.
Although the project has had to do some restructuring, it is still adding features and expanding. Due to the popularity of stablecoins, there may be a future for this project yet.
Frequently asked questions
What is the Reserve Rights Token (RSR)?
How does the Reserve Rights Token (RSR) function within the Reserve ecosystem?
What are the potential benefits of holding Reserve Rights Token (RSR)?
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