Following a initial exchange offering on the Huobi Prime platform, the Reserve protocol team has developed a dual-token stablecoin platform that they believe can expand the sector to worldwide adoption. The Reserve protocol is powered by three tokens: the Reserve stablecoin (RSV), the Reserve Rights token (RSR), and collateral tokens, which are other assets held by the Reserve smart contract to back the value of the Reserve token stablecoin, according to the Reserve protocol.

It is still pegged to the US dollar; therefore 1 RSV is worth 1 USD. The Reserve stablecoin aims to offer a reliable and strong environment for underdeveloped nations while also facilitating cheaper remittances. RSV is held in the Reserve vault, which symbolizes the smart contract platform. The Reserve Rights token is a utility token that allows its owners to vote on governance issues. RSR, unlike RSV, is volatile and is utilized to keep RSV stable at 1 USD.

History

The Reserve Rights cryptocurrency debuted in 2019 and was established by Nevin Freeman, the Reserve project's CEO and a successful entrepreneur who cofounded three companies. Matt Elder, who formerly worked for Google, app search engine Quixey, and the Linux Standard Base, is the project's second cofounder.

The Reserve protocol team has grown significantly since its initial public offering on the Huobi Prime platform, and currently includes over two dozen employees, including developers, engineers, and legal and compliance specialists. The platform has also attracted considerable investment from famous investors such as Coinbase Ventures, Sam Altman, president of seed money firm Y Combinator, and PayPal co-founder Peter Thiel.

How does it work

Reserve tokens exist on the Ethereum blockchain, and the Reserve protocol's goal is to create a novel method for users to retain stablecoin value. Because it is tied to the US dollar, it must maintain its $1 value. If the RSV token goes below 1 USD, the protocol purchases more RSV, bringing the token's price back up to 1 USD on markets. If the goal value exceeds 1 USD, the protocol sells freshly produced or surplus Reserve stablecoins for tokenized assets or RSR, assisting in bringing the stablecoins price back down to 1 USD.

The RSR token's duty is to recapitalize the market if the assets held by the Reserve protocol decline and can no longer ensure the existence of the RSV. As a result, as the quantity of the RSV token increases, the number of RSR decreases. Stablecoins supported by the Reserve protocol are backed by a basket of cryptocurrencies controlled by smart contracts. This differs from other stablecoins, which are often backed by fiat currencies such as US dollars and kept in a bank account owned by the stablecoin issuer. Ethereum, USD Coin (USDC), True USD (TUSD), and the Paxos Standard are the cryptocurrencies that support the stablecoin (PAX). However, there are plans to extend the number of collateral tokens, including fiat currency and assets, to provide a more diverse variety.

Total supply and circulation

Reserve Rights has a maximum quantity of 100 billion RSR tokens, with 42,302,323,974 RSR now in circulation. Despite the fact that the RSR token was introduced with a fixed amount of 100 billion tokens, the Reserve protocol team has said that this supply may alter.