Reserve Rights (RSR)

Reserve Rights (RSR) is an ERC-20 token that will serve two main purposes for the Reserve Protocol: insuring Reserve stablecoins (RTokens) through staking and governing them through proposing & voting on changes to their configuration.

Reserve Rights Staking

Reserve Rights (RSR) exists as a backstop to make RToken holders whole in the unlikely event of a collateral token default. In order for RSR holders to provide this insurance, they can decide to stake on any one RToken, or divide their RSR tokens by staking on multiple RTokens. RSR holders can also decide not to stake their RSR at all.

In return for providing this insurance, RSR stakers can expect to receive a portion of the revenue the RToken they decided to insure makes. As a general rule, RSR stakers can expect higher returns (APYs) the bigger the market cap of the RToken they insure becomes.

In contrast with the “staking” you see in a lot of other projects these days, RSR staking is built to last. In our model, late participants do not pay for early participants, nor is a trust in staking of other parties required.

For more detailed information on RSR staking, please refer to the RSR staking section on the protocol documentation, or watch the explanatory video below:

Reserve Rights Governance

Reserve Rights (RSR) second main purpose is to serve as the Reserve Protocol’s governance token. We believe that RTokens will have to evolve over time in order to continue to optimally serve both the RToken holders & the RSR stakers

Each RToken can have its own governance system, and we encourage RToken creators to experiment with different governance models they think are appropriate for their RToken. We expect most RToken governance systems to be decentralized, where the amount of RSR one holds relates to the voting power one has over that RToken (but not necessarily the simple token voting system that gets used in many cryptocurrency projects that exist today).

For more detailed information on RSR governance, please refer to the RSR governance page (coming soon!).