About Reserve Rights (RSR) 

Reserve Rights (RSR) is the native staking token of Reserve Protocol, a stablecoin issuance platform operating on the Ethereum blockchain.

Reserve’s flagship stablecoin is RSV, a dollar-pegged asset backed by TUSD, PAX and USDC, protocol documentation explained. Within the context of RSV, the Reserve Rights (RSR) tokens are used to stabilize the token’s USD-peg and also to maintain collateralized reserves.

The protocol also allows for the issuance of RTokens, stable-value assets secured by an underlying basket of ERC20 tokens. In theory, anyone can create an RToken provided they have enough funds to back it.

Staking RSR to a specific RToken entitles the token holder to various cash flows generated by the stablecoin.

According to project documentation, RTokens can generate revenue by lending out their underlying collateral, collecting transaction fees, and also though revenue sharing agreements with collateral issuers.

Governance is controlled by the RToken’s creators who ultimately determine the monetary reward dished off to RSR stakers.

It’s important to note that if the tokenized collateral backing an RToken defaults, staked RSR is used to cover any resulting losses.

In addition to facilitating asset issuance, Reserve operates an application used to store, send and receive fiat-tracking assets.

Per Cointelegraph, Reserve is set to launch on the Ethereum mainnet in August of 2022.

When was RSR created and how much was it worth?

Reserve Protocol was initially launched in May of 2019. The project’s whitepaper lists 8 initial core team members, Taylor Brent, Daniel Colson, Matt Elder, Henry Fisher, Nevin Freeman, Jesper Ostman, and Elizabeth Van Nostrand, each of whom assisted in Reserve’s early development.

Both Freeman and Elder remain heavily involved in the protocol serving as CFO and CTO, respectively.

Reserve’s native staking token was first released in August of 2018, following a private token sale which netted the project north of $2 million from a series of leading investors including Peter Thiel, co-founder of PayPal/Palantir, and Sam Altman, the president and co-chair of Y Combinator, project documentation explained.

This was followed by a public initial exchange offering in May of 2019 which saw 3 billion tokens distributed at a price of $0.0011. 

According to CoinGecko, RSR traded within a tight, consolidated range over its first 18 months before taking off in December of 2020. This positive momentum followed into the new year with the token hitting a record high of $0.11 in April 2021.

RSR’s price has been subject to volatility. As of June 2022, it traded at around $0.0066.

Per Cointelegraph, Reserve is set to launch on the Ethereum mainnet in August of 2022.

How is the price of RSR determined?  

RSR is a deflationary asset with a hard cap of 100 billion tokens. According to cryptorank, 2 billion tokens (2% of total supply) were initially distributed via a private sale in August of 2018, while an additional 3% was released though a public IEO, some nine months later.

Some 58.6% of RSR’s supply was earmarked for the Reserve Foundation, while another 20% went to the project’s team and early advisors.

As of June 2022, there were 18.1 billion RSR in circulation. Remaining tokens will be released between August 2022 and January of 2023.

Why does RSR have value?  

RSR’s value is an extension of supply versus demand in conjunction with the various cash flows to which token stakers are entitled.

Is RSR secure?

While RSR is secure in the sense that it’s listed and in custody of exchanges, stakers must be aware that their funds can be seized in the event that collateral held to secure Reserve’s stable-value assets defaults.

What are the main benefits of RSR?

• RSR entitles stakers to various cash flows generate by stable-value assets operating on the protocol.
• Reserve Protocol operates an eponymous application, Reserve, that can be used to store, send, and receive stablecoins.
• Reserve Protocol’s framework allows anyone to create a stable-value asset, given they have the funds to back.    

 What do critics say about RSR?

• Critics note RSR’s poor price performance. The token is down about 80% in the past 12 months.