Reserve Rights Token (RSR) – the complete guide =

Past banking crises have shown that the financial system is based on trust and that we blindly trust that our money is safe in the bank. The year 2008 was therefore a turning point in which we saw in reality that our money was not as safe as we thought. If we look at this on a global scale, we see that there are still many countries where government agencies exercise too much power and are even corrupt. These billions of people therefore have no safe place to store their money.

The Reserve Protocol therefore aims to create a stable, decentralized currency that cannot be abused or influenced by the government. They believe that everyone in the world, anywhere, should have the freedom to trade and transact without being regulated.

Everything I say or write is purely general information and is intended for general information only. It does not contain any investment advice or an offer, invitation or recommendation to buy or sell any financial instrument or to enter into any other transaction. We are not professional financial advisors. If you want to invest in crypto, only invest money that you are willing to lose, because the chance of losing it is always there. We are not responsible for the investment choices you make, the only person responsible for this is you yourself.”

Photo header: Vladimir Kazakov/Shutterstock.com

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  • View Quick
  • Goal
  • Reserve Protocol
    • Decentralization
    • ERC20
  • Reserve Protocol Tokens
    • Reserve Stablecoin (RSV)
      • RSV operation
      • Features Reserve StableCoin
        • Hyperinflation
        • Cheap trades
        • Developing countries
    • Reserve Rights Token (RSR)
  • How do I buy Reserve Rights Token?
  • Conclusion

Goal

Reserve aims to build a stable, decentralized and asset-backed cryptocurrency that doubles as a digital currency. All this with the scalability of a project using 100% collateral. The goal is to create a universal value that is resistant to unreliable banks and hyperinflation.

The protocol works with 3 types of tokens that we will discuss further:

  1. Reserve Stablecoin Token (RSV)
  2. Reserve Rights Token (RSR)
  3. Several tokenized currencies held by the protocol to support RSV.

The video below gives you a brief introduction to the Reserve Protocol:

 

Reserve Protocol

In recent years we have seen that more and more money is being printed. Printing money is not a solution because it has a huge impact on the value of the money. Unfortunately, we as citizens have no say in this. These are decisions that are made at a higher level. But what if the leaders misuse such power? In the example below we see an overview of the annual inflation rate and how government organizations can influence purchasing power and inflations.

Reserve is an organization developing a decentralized platform aimed at providing access to financial resources to everyone around the world, with Reserve Stablecoin (RSV) at its core. They create collateralized banking solutions using the benefits of blockchain technology.

The Reserve Protocol therefore strives to create a stablecoin (RSV) that is fully decentralized and cannot be taken down by any agency. Security is central here, their mission is to bypass corrupt bankers and governments so that everyone in the world has access to a currency that is safe. This concerns people in developing countries, but also wealthy people who have no safe place to secure their investments.

Decentralization

The ideology of decentralization is a feature of crypto that is increasingly emphasized in new projects. Reserve sees it globally and looks at people in all forms of society, they think it is a basic right that everyone can trade worldwide and should be able to make transactions. Fortunately, the Netherlands is a prosperous country where we still make extensive use of banks, but we often forget that this is not without risk.

For example, people can lose confidence in a bank en masse or banks can make certain decisions that indirectly influence your established capital. Of course, decentralization goes further than that. In the world of crypto, we see that decentralization is an important agenda item, but in practice we still see many exchanges and wallets that are centrally controlled.

ERC20

The Reserve Protocol crypto are ERC20 tokens and are built on the Ethereum blockchain. In the future, there are plans to have these communicate across the different blockchains so that everyone can use the Reserve Protocol. This decentralizes the entire network. An existing way to let different blockchains communicate with each other is through the use of wrapped tokens.

Source: Reserve Protocol – reserve.org

Reserve Protocol Tokens

The Reserve Protocol platform was launched in 2019 and operates on the basis of a dual-token system, namely the Reserve Stablecoin (RSV) and the Reserve Rights Token (RSR). They complement each other and stabilize the ecosystem of the protocol. Both are part of the ERC20 network.

Reserve Stablecoin (RSV)

On the CoinGecko platform, we see that there are now more than 40 stablecoins. Stablecoins often gain popularity as investors trust the current monetary system less and less. When investors take profits, they tend to immediately invest them in a stablecoin. Why? Simply because then their profits are not subject to possible inflation that can occur at any time.

The RSV is decentralized and backed by investors headquartered in Silicon Valley. The Stablecoin is financially pegged to the US dollar at a ratio of one to one. So one USD is worth the same as one RSV.

The Reserve Protocol stablecoin was created to counteract the instability of most cryptocurrencies and, as it were, to stabilize them. It is a currency that is ultimately tied to the value of a fiat currency, here the US dollar. The Reserve Stablecoin (RSV) was launched in 2019 backed by several tokenized assets. In 2019 at launch, those were mainly USDC and TUSD.

So currently it is still pegged to the US dollar, but the goal is that they will no longer need the peg to the USD in the future and that RSV will be a stable currency on a standalone basis regardless of fiat currency fluctuations.

RSV operation

The idea of a stablecoin is of course a utopian idea, but often we have no idea how this works in practice and how they regulate it. On Reserve’s website, they themselves provide an example of how Reserve Stablecoin works in practice:

Suppose the price of one Reserve is fixed at 1 USD. If the current open market price value of Reserve falls to USD 0.98, there will be an incentive to purchase and redeem these tokens using smart contracts for USD 1 of collateral tokens. They will continue to buy until there is no more money to be made and the market price once again corresponds to 1 USD.

When the demand increases, the price will rise. Then, if the current value has risen to USD 1.02, the market is incentivized to buy new Reserve tokens for USD 1 of collateral. They then continue to sell until there is no more money to be made, after which the market price again matches the purchase price of 1 USD.

Source: Reserve Protocol – reserve.org

Features Reserve StableCoin

Like any other stablecoin, they want to counter the fluctuations of the value by offering a fixed value to a certain coin. What makes this stablecoin different is that it is related to the Reserve Right Token (RSR) and they need each other to keep the value of RSV stable.

Hyperinflation

The overall goal of a stablecoin is, of course, to eliminate all possible forms of inflation. The emergence of the crypto world is a counter-movement to the interference of central governments that influence our finances. This can be done, for example, by issuing unsolicited loans to third parties, but it is also possible that a corrupt government deliberately creates inflation for personal reasons, without looking at the consequences for their country.

In countries such as Venezuela that have experienced massive hyperinflation before, the Reserve Stablecoin is the chance to hold your money’s worth. This way you keep control over your own assets and you can watch over your investments yourself.

Cheap trades

When you transfer money to a foreign country with a different currency, this is often an expensive operation. We pay transaction costs, but also additional costs on the exchange rate. In addition to being an expensive affair, this transaction can also take days. We see more often that even in one particular country, a transaction from one bank to another bank can sometimes take days. While mail traffic worldwide is immediately successful.

By using Reserve Protocol as a global payment method, we use one universal platform, which means that payments and transactions are executed much faster, but the transaction costs are also much lower than with current international payments. Reserve Protocol is already used as a means of payment in countries such as Venezuela, Argentina and Colombia.

Developing countries

We as Europeans are usually lucky to have coverage on almost every platform. It is therefore self-evident that we can invest in our favorite crypto through various exchanges and wallets and help build the future. We sometimes forget that there are parts of the world where residents do not have this freedom. For example, in Western Europe we have access to exchanges such as Binance and Bitvavo, but that is not the case everywhere.

In the West, we were born into a free and liberal system where virtually everyone has the opportunity to invest or keep his or her money relatively safe. What is a basic need for us is a luxury for people in developing countries. By creating Reserve Stablecoin (RSV) they want to connect the whole world, involving everyone in the global economy, regardless of their origin. It does not matter whether you are in possession of 100 euros or the equivalent of 1.7 million Indonesian rupiah, it is the purchasing power that we want to keep stable through Reserve Protocol.

Reserve Rights Token (RSR)

The Reserve Rights Token (RSR) is a crypto that, like all crypto coins, is subject to a fluctuating value. It is a question of supply and demand and healthy market corrections. These fluctuations are regulated by a series of smart contracts that regulate the circulation of the coins to stabilize the price of the Reserve Stablecoin.

It is a utility token that allows owners to vote on governance proposals. In addition, Reserve Rights Token helps to maintain the value of Stablecoin (RSV) at 1 USD. The Rights Token is therefore subject to volatility, which is also used as collateral to guarantee the link with RSV.

The Reserve Rights Tokens (RSR) are used to regulate the capital in the network. If the assets in the Reserve’s collateral or vault begin to fluctuate in value at any time, they will no longer meet the existing value of the Reserve Stablecoin (RSV). If there is an increase in the total supply, the number of RSR tokens in circulation will decrease. Both tokens are always related to each other and they must regulate and control the stability and volatility among themselves.

 

How do I buy Reserve Rights Token?

Buying Reserve Rights Token on Bitvavo is a piece of cake. Within minutes and for less than a euro you can already be the proud owner of RSR.

  1. Register here for free at Bitvavo
  2. Verify yourself by clicking on your name in the top right corner and then go to ” Verification “.
  3. Transfer money via iDeal. You do this by clicking on ” Deposit Euros “.
  4. Then enter the amount and choose iDeal as payment option so that the money is in your Bitvavo account within a minute. Then click on “Pay”.
  5. If you click on ” Overview ” afterwards, you will see the money.
  6. Find RSR, click on it and then press “Buy”.
  7. Invest the amount you have in mind in RSR.
  8. Congratulations! You have purchased RSR!
    Don’t forget to save your username and password

Conclusion

The Reserve Protocol is not the first to create a stablecoin, nor is it reinventing the wheel. The Reserve token aims for stability in a new unique way that is missing from centralized stablecoins with questionable or unknown support. Reserve Protocol’s project focuses on the long term with a very clear vision for the future.

Blockchain technology is evolving and the economy of crypto is growing and maturing making it increasingly difficult for one project to differentiate itself from all others. The Reserve Protocol competes with a large number of stablecoins. They all have the same idea, but not all the same effect. The Reserve Protocol therefore aims to become the dominant stablecoin in crypto. Their ultimate goal? Building a platform that is as solid as BitTorrent and as good and easy to use as Spotify and Netflix.

Are you curious how many people already know the Reserve Protocol? Ask all your questions in our EverythingAboutCrypto Facebook group!

 

 

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