What is the issuance amount of Reserve Rights (RSR) coins?

Reserve Rights (RSR) token issuance is governed by rules outlined in its whitepaper, with initial allocation and a Token Generation Event contributing to its circulating supply.

Dec 16, 2024 at 04:20 am

Reserve Rights (RSR) Coin Issuance: A Comprehensive Overview

Reserve Rights (RSR) is a stablecoin cryptocurrency pegged to a basket of fiat currencies and tokenized precious metals. It aims to provide a stable, decentralized alternative to traditionalfiat currencies.

1. Reserve Rights Token Issuance

The issuance of RSR tokens is governed by a set of predetermined rules outlined in the project's whitepaper. Here's a detailed explanation of the issuance process:

a. Token Allocation

The RSR token supply was initially allocated as follows:

• 60% for the Reserve Rights Ecosystem Reserve
• 20% for the RSR Development Team
• 20% for the RSR Token Sale

b. Token Generation Event (TGE)

The Token Generation Event (TGE) took place on May 22, 2020, where 20% of the RSR token supply was sold to early investors. The sale raised approximately USD 120 million and established the initial circulating supply of RSR.

c. Reserve Asset Ratio

One of the key features of Reserve Rights is its Reserve Asset Ratio (RAR). The RAR determines the amount of RSR tokens that must be backed by corresponding reserve assets. Initially, the RAR was set at 100%, meaning that every RSR token was fully backed by an equivalent value of reserve assets.

d. Token Issuance and Burning

When the RAR is below 100%, Reserve Rights issues additional RSR tokens to increase the value of the reserve assets. Conversely, when the RAR is above 100%, Reserve Rights burns RSR tokens to decrease the value of the reserve assets and maintain the stability of the RSR peg.

2. Reserve Asset Basket

The Reserve Rights stablecoin is backed by a basket of reserve assets, which currently includes:

• US Dollar (USD)
• Euro (EUR)
• Japanese Yen (JPY)
• British Pound (GBP)
• Tokenized Gold (XAUt)
• Tokenized Silver (XAGt)

The composition of the reserve asset basket is subject to change based on market conditions and the discretion of the Reserve Rights team.

3. Tokenomics and Price Stability

The issuance and management of RSR tokens are crucial for maintaining the stable value of the Reserve Rights stablecoin. Through a combination of token allocation, TGE, RAR, and reserve asset management, the project aims to ensure that the supply and demand dynamics of RSR are aligned with the stability of the peg. The RSR token price should theoretically remain close to the value of the underlying reserve assets.

4. Future Issuance

The future issuance of RSR tokens will depend on various factors, including market conditions, the Reserve Asset Ratio, and the overall demand for the Reserve Rights stablecoin. The Reserve Rights team regularly monitors these factors and may adjust the issuance strategy as needed to maintain the stability of the platform.