What is Reserve?
The Reserve protocol defines two tokens:
- The Reserve token (RSV) – the decentralized stablecoin
- The Reserve Rights token (RSR) – a utility token with multiple roles in the network
The Reserve movement is a collection of people who believe cryptocurrency of some kind can do better than fiat money, and that none of the existing options will be able to scale to global use, maintain stable purchasing power, and not be shut down.
Our goal is pretty simple: make the most accessible, economically strongest, and most robust-to-attack currency that we can make, and over time convince a large portion of the world to replace other currencies with it.
Who is building Reserve?
We started in Silicon Valley and have branched out into Latin America, Africa, and Asia so far.
Many of the core team members come from or helped build the effective altruism community. Some are experienced professionals and others are young entrepreneurs.
Many are listed here. Some are anonymous.
Why are you building Reserve?
This is the largest ethical wealth creation opportunity we’ve ever encountered. That’s a euphemistic way of saying we are doing it for both the money and the way it will change the world.
What would total success of Reserve look like?
Total success would look like:
- RSV would closely index the global economy. This can be accomplished by diversifying the collateral token portfolio that backs RSV in the right way. A currency that works this way would be a superior global store of value to any fiat money, as it would not undergo inflation.
- RSV would be accepted by most people and businesses around the world, and used for the majority of global trade. You’d be able to send money peer-to-peer to just about anyone anywhere with much less friction than we deal with today moving money around the world.
- RSV would be harder to shut off than Bitcoin. It would survive for centuries, completely independent of the founding team, through decentralized governance. This would be one of the greatest feats of political coordination of our lifetime, on par with founding a new country that goes on to prosper.
- The destruction from the hyperinflation of fiat currencies would decrease because any time a fiat currency started to hyperinflate, residents of such country could smoothly switch over to RSV. Hyperinflation will always be painful, but it’s less bad when accompanied by full currency substitution, and substitution with a stable cryptocurrency could mean the last currency failure that the population in question ever has to deal with.
- The supply of RSR would go down dramatically as more and more RSR would be used to purchase RSV that accumulates in the Reserve smart contract.
Is it going to work?
The Reserve team disagrees about this. Some of us think it’s going to work, and others are really skeptical. The main co-founder is convinced it will work (big surprise lol). Some others work on Reserve because they like the people and the intellectual challenge, and they really want to make it work if it can.
The reasons why the believers think Reserve is going to work are SUPER complicated and they take a long time to explain. Assuming it starts working, it will be pretty clear at that point. MakerDAO is a cool example, where nobody understood it and many thought it couldn’t work, and then they just built it and now you can see what happens when you run that protocol. If you want to try to evaluate whether our team can tell in advance how a decentralized stablecoin will play out, read our previous predictions about Maker and then research how Maker works in practice.
Some of the main reasons the believers are excited about Reserve are:
- It will be hard to attack, like Bitcoin, once it’s mature.
- It is economically pretty simple – 100% asset backing, full redeemability.
- It’s being built with people in places like Venezuela with broken fiat money in mind, so the plan is for it to be more accessible than any other stable currency in those parts of the world.
- We believe that no other stablecoin has the features necessary to scale to 100B+ and survive. If Reserve reaches a tipping point of adoption, it could end up with an extremely strong network effect, which is common for currencies generally.
Only time will tell for sure :)
Reserve Rights (RSR)
What’s the point of the RSR token?
RSR will likely play a role in the governance process involved in making updates to the Reserve smart contracts over time. This isn’t defined yet, since we have rejected every design for on-chain governance that we have heard of or come up with. We intend to add it in time, and we want a widely distributed token that is not fixed in value to be part of that system.
RSR has economics that are somewhat similar to the MKR token. Broad market forces within the Reserve network can impact its value, so there are some incentives to hold it. It’s up to community members to come to their own judgments on whether they want to hold or spend their RSR, we make no claims about future price. That being said, we believe that RSR is best suited for those who want to profit from arbitrage opportunities within the protocol.
The value of RSR plays a role in stabilizing RSV in some edge cases. Say there are 100 collateral tokens each backing 1% of the value in RSV and one of them defaults (e.g. through an exit scam or the government freezes its assets). The protocol mints and sells RSR to make up the difference, re-capitalizing the collateral pool from 99% back up to 100% again.
Is the RSR token fully functional yet?
The version of RSR that exists today is just a simple temporary placeholder ERC-20 token. So right now, you can’t do anything with the RSR token other than transfer it to someone else. When the full protocol is launched on the Ethereum mainnet (it’s still in testing on Ropsten, an Ethereum testnet), the ERC-20 token will be replaced with a fully functional token.
We anticipate that will happen in 2020 but can’t make official promises.
Can I buy RSR somewhere?
Read about our Huobi Prime Offering !
Which tokens have been sold so far and on what terms?
13,392,000,000 RSR out of 100 billion RSR have been sold so far in two rounds.
Seed Round (Q2 2018)
- Allocation: 12,392,000,000 RSR
- Price: $0.0004/RSR
- Lockup: Locked until mainnet launch (anticipated in 2020), then released over six months
Private Sale (Q2 2019)
- Allocation: 1,000,000,000 RSR
- Price: $0.0020/RSR
- Lockup: 25% unlocked upon delivery (prior to the Huobi Prime offering), 75% unlocked over three months
Are there any bounties or airdrops?
We don’t currently offer any bounties for promoting Reserve on social media or any airdrops for the RSV or RSR tokens. Our goal is to get real-world adoption of RSV, and we will consider offering bounties and airdrops only in countries where that’s legal and insofar as they help us with getting real-world adoption.
Huobi Prime Offering
What is the Huobi Prime sale price?
1st round: 600,000,000 RSR tokens (20% of total sold on Huobi Prime) - $0.0006 price limit
2nd round: 2,400,000,000 RSR tokens (80% of total sold on Huobi Prime) - $0.0011 price limit
Volume weighted average sale price: $0.0010
What is the total supply of RSR?
There are initially 100 billion RSR tokens.
Once the Reserve protocol is migrated to mainnet (anticipated in 2020) and RSR is integrated into the protocol, the supply may change. Our current protocol design includes burning RSR when it is used to purchase RSV from the Reserve smart contracts, and minting new RSR under some conditions.
The RSR smart contract address is here: https://etherscan.io/token/0x8762db106b2c2a0bccb3a80d1ed41273552616e8 (this address may be updated before the Prime Offering if we find any changes that need to be made).
What is the total supply in circulation?
1 billion (1% of total) tokens were sold during a recent private sale. These tokens have not been released yet. 25% will be unlocked, and 75% will vest over three months. They will be released to the purchaser prior to the Huobi Prime offering.
All seed investor, partner, team, and advisor tokens are locked until mainnet launch (anticipated to occur in 2020).
3% of tokens will be sold in the Huobi Prime offering, and be subject to no vesting schedule.
I’ve heard that private sale tokens can be refunded. How does that work?
We recently sold tokens to one buyer. We have decided to offer that buyer the option to receive a full or partial refund. This is so that if he or anyone he resold tokens to have changed their mind about wanting to participate in light our Huobi Prime pricing, that option is available.
We’ve asked the original buyer to get back to us on what percentage of his total allocation he would like refunded by Tuesday, May 14 at 11:59pm EDT, which is Wednesday, May 15at 11:59am Singapore time (GMT+8). If you have somehow ended up with an allocation of RSR tokens and you would like a refund, please get in touch with whomever you purchased them from ASAP so that our buyer knows what percentage of participants would like to receive a refund by that time.
What was the price in the recent private sale?
The recent private sale price was originally $0.0050. Once the Huobi Prime price was announced, we chose to reduce the private sale price to $0.0020, effectively handing out more tokens than were originally agreed upon, in order to keep things more fair.
This private sale was with a single (non-US) buyer. Some of the allocation may have been resold to other buyers. No US person should have ended up with tokens, as the buyer’s contract expressly prohibited the resale of any tokens to US people.
Why did you choose to do a Prime Offering over other options?
We decided to do a listing on Huobi Prime in order to jumpstart public interest in Reserve. So far we have focused primarily on building and learning about our target stablecoin users, and we want to grow our community in the cryptosphere.
On twitter it says secondary sales are not allowed. But from your statement it says secondary sales happened.
For this recent private sale, the project only sold tokens to a single (non-US) buyer. Our contract is only with that single buyer, but we understand that many people have ended up with allocations in one way or another. This is okay, the tokens are meant to be held by many people over time. Since we are aware that many people have token allocations in one way or another, we are working to make sure those people are taken care of. You can’t please everyone all the time, but we take it as our duty to put in our best effort.
Did all private investors get the same price in the recent private sale?
Reserve only sold to one private investor in the last round. However, we have heard rumors that some token allocations were resold OTC in multiple venues, and those transactions may have been at different prices.
Why would the Huobi Prime Offering have a lower price than the earlier private sale?
Tokens are sold on Huobi Prime at a discount to prior sales in order to give market participants who don’t yet know about the project an incentive to come check it out.
Can you disclose which contract address the token is issued from?
Here it is: https://etherscan.io/token/0x8762db106b2c2a0bccb3a80d1ed41273552616e8 (this address may be updated before we distribute tokens to any private sale investors prior to the Prime offering if we find any changes that we need to make; if we make any change we’ll update this link).
When is the Huobi offering date?
When was the recent private sale?
When was the seed round?
Q2 2018 (about one year earlier).
Why do you need Huobi Tokens to participate in the Prime offering?
The listing is on Huobi Prime, and one of their rules is that you have to hold Huobi Tokens in order to participate.
You can find out more about the rules for participating here: https://huobiglobal.zendesk.com/hc/en-us/articles/360000266501-Huobi-Global-will-Launch-Third-Prime-Trading-Project-Reserve-Protocol-on-May-22-2019
What are your social media channels?
Official Website: https://reserve.org/
Facebook: We do not currently have a Facebook Page
Telegram for Chinese community: https://t.me/ReserveProtocolChineseOfficial
KaKao for Korean community: https://open.kakao.com/o/gCblNgpb
U.S. citizens and those located in the U.S. (collectively, "U.S. people") are not allowed to participate in the Prime Offering on Huobi. Prime Offering participants are prohibited from selling RSR to U.S. people or acquire RSR for the benefit of U.S. people indefinitely. —> in FAQ