What is Reserve Rights (RSR)?

By CMC AI
04 December 2025 11:33PM (UTC+0)

TLDR

Reserve Rights (RSR) is the governance and staking token for the Reserve protocol, a decentralized system enabling the creation of asset-backed stablecoins (RTokens) designed to combat inflation and financial instability.

  1. Governance & Safety Net: RSR holders vote on protocol upgrades and act as a backstop, staking tokens to overcollateralize RTokens, protecting users from collateral defaults.

  2. Revenue Sharing: Stakers earn a portion of fees generated by RTokens, incentivizing participation in protocol security.

  3. Decentralized Architecture: Built on Ethereum and deployed across chains like Base and Arbitrum, Reserve allows anyone to create and govern stablecoins.

Deep Dive

1. Purpose & Value Proposition

The Reserve protocol targets economies with unstable currencies by enabling communities to mint RTokens—stablecoins backed by diversified assets (e.g., cryptocurrencies, commodities). RSR ensures these RTokens remain solvent: stakers lock RSR as insurance, absorbing losses if collateral fails. This mechanism aims to provide a decentralized alternative to centralized stablecoins, particularly in hyperinflation-prone regions.

2. Tokenomics & Governance

RSR has a fixed supply of 100 billion tokens, with ~61.67 billion circulating as of December 2025. Staking RSR lets users earn revenue proportional to the RToken’s adoption, but exposes them to first-loss risk. Governance rights allow proposing and voting on parameters like collateral types or fee structures, decentralizing control over RTokens.

3. Key Differentiators

  • Sustainable Staking: Unlike models where late entrants subsidize early adopters, RSR staking rewards scale with RToken usage, aligning long-term incentives.
  • Multi-Chain Flexibility: RTokens can be deployed on Ethereum, Base, and Arbitrum, broadening accessibility and integration with DeFi ecosystems.

Conclusion

Reserve Rights is a dual-purpose token powering a decentralized stablecoin framework focused on financial resilience. Its governance model and staking mechanics aim to balance risk and reward while fostering censorship-resistant money. As the protocol expands, will RSR’s role in stabilizing global economies grow beyond its current niche?

CMC AI can make mistakes. Not financial advice.