What is Reserve Rights (RSR)?

By CMC AI
09 December 2025 04:00PM (UTC+0)

TLDR

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

  1. Governance backbone – RSR holders vote on protocol upgrades and RToken configurations.

  2. Collateral safety net – Staked RSR acts as overcollateralization to protect RToken holders from defaults.

  3. Revenue-sharing model – Stakers earn a portion of RToken fees but bear first-loss risk.

Deep Dive

1. Purpose & Value Proposition

The Reserve protocol targets economies suffering from hyperinflation or unreliable currencies by allowing anyone to mint RTokens—stablecoins backed by diversified asset baskets (e.g., cryptocurrencies, real-world assets). RSR’s primary role is to absorb losses if collateral underperforms, ensuring RTokens remain solvent. This mechanism aims to provide a trustless alternative to centralized stablecoins like USDT.

2. Tokenomics & Governance

RSR has a fixed supply of 100 billion tokens, with ~61.6 billion circulating as of December 2025. Stakers lock RSR to overcollateralize specific RTokens, earning fees from transactions and lending activities. Governance powers include adjusting collateral ratios, adding/removing assets, and protocol upgrades. Unlike algorithmic stablecoins, Reserve emphasizes transparency, with monthly token burns (initiated in May 2025) to reduce supply.

3. Key Differentiators

  • No dilution risk: Staking rewards come from RToken revenue, not token inflation.
  • Multi-chain reach: RTokens operate on Ethereum, Base, and Arbitrum, enabling cross-chain stability solutions.
  • Real-world focus: Partnerships like Strategic Super Reserve aim to expand RTokens in emerging markets.

Conclusion

Reserve Rights anchors a decentralized stablecoin ecosystem prioritizing financial resilience through overcollateralization and community governance. As regulatory scrutiny on stablecoins intensifies, will Reserve’s model strike the right balance between decentralization and practicality for mass adoption?

CMC AI can make mistakes. Not financial advice.