Reserve Rights

The Reserve Protocol is a decentralised platform built on the Ethereum blockchain, designed to create and manage Reserve Tokens (RTokens) — asset-backed stablecoins supported by a diverse basket of collateral tokens. The project aims to offer stable, transparent, and censorship-resistant digital currencies that can be used for payments, savings, and financial protection, particularly in regions facing economic instability and inflation.

The Reserve Protocol focuses on decentralisation, enabling the creation of multiple RTokens, each governed and overcollateralised independently. Each RToken can be customised with different collateral assets, risk parameters, and governance models, providing flexibility across multiple financial ecosystems.

Reserve Rights (RSR) is an ERC-20 token native to the Reserve Protocol, designed to ensure the stability and security of Reserve Tokens (RTokens). RSR acts as both a utility and governance token, playing a critical role in protecting the value of RTokens and decentralising control over their configurations.

RSR operates across all RTokens within the protocol and can be staked to provide overcollateralisation, a mechanism aimed at protecting RToken holders in the event of a collateral default. Additionally, RSR grants holders the ability to participate in the governance of the Reserve Protocol, influencing how RTokens are managed and adjusted.

RSR serves as a safeguard to protect RToken holders from collateral asset defaults. By staking RSR on a specific RToken, holders can provide overcollateralisation, meaning the staked RSR will be liquidated to cover potential shortfalls if the collateral assets backing an RToken default or lose value.

• Revenue Sharing Incentive: Stakers are compensated for assuming this risk by receiving a portion of the revenue generated by the RToken’s collateral.
• Risk Exposure: If a collateral token defaults, a proportional share of the staked RSR may be liquidated to cover losses for RToken holders.

RSR holders play a vital role in the governance of the Reserve Protocol. By staking RSR, holders can vote on decisions related to the management and configuration of RTokens, such as:

• Adjusting collateral baskets and risk parameters.
• Setting revenue distribution models.
• Proposing and voting on protocol upgrades.

Governor Anastasius, a variant of OpenZeppelin Governor, manages the governance framework, ensuring a transparent and democratic decision-making process. Proposals typically follow a structured process with a voting period and a delay before execution to ensure stability.

RSR has a fixed total supply of 100 billion tokens, with approximately 53.5 billion in circulation as of early 2024. The remaining supply is held in the Slow Wallet and Slower Wallet, both subject to strict withdrawal limits and time delays to control token emissions and avoid sudden market supply shocks.

• Slow Wallet: Controlled by the Reserve team, with a 4-week delay for withdrawals.
• Slower Wallet: Managed by Confusion Capital, with further restrictions, including a cap of 1% of the total supply being withdrawable every 4 weeks.

In January 2024, a new emission model was introduced, aligning with Bitcoin's deterministic emission schedule, gradually reducing token release over time. This approach aims to enhance long-term value retention by controlling circulating supply expansion predictably.

The Reserve Protocol and the RSR token were co-founded by Nevin Freeman and Matt Elder in 2017.

• Nevin Freeman, the CEO, is an entrepreneur focused on global financial stability and systemic risk reduction.
• Matt Elder, the CTO, brings extensive technical expertise from his previous roles at Google, Quixey, and the Linux Standard Base, contributing to the protocol's blockchain infrastructure.

The Reserve ecosystem also includes entities such as Confusion Capital, responsible for funding and supporting protocol development, and ABC Labs, which focuses on core protocol advancements.