What is Reserve Rights (RSR)?

By CMC AI
14 November 2025 11:16PM (UTC+0)

TLDR

Reserve Rights (RSR) is a governance and utility token powering the Reserve Protocol, a decentralized platform for creating asset-backed stablecoins (RTokens) designed to combat inflation and economic instability.

  1. Governance & Stability Mechanism: RSR holders vote on protocol upgrades and stake tokens to overcollateralize RTokens, acting as a financial backstop.

  2. ERC-20 Token: Built on Ethereum, RSR operates across chains like Base and Arbitrum, supporting decentralized token portfolios (DTFs).

  3. Fixed Supply & Burns: With a capped supply of 100 billion tokens, RSR uses monthly burns to reduce supply, incentivizing long-term participation.


Deep Dive

1. Purpose & Value Proposition

Reserve Rights aims to create stable currencies (RTokens) for regions with volatile economies. RTokens are backed by diversified assets (e.g., cryptocurrencies, commodities) and overcollateralized by RSR stakers, who absorb losses if collateral underperforms. This system provides a decentralized alternative to fiat currencies vulnerable to hyperinflation.

2. Technology & Architecture

As an ERC-20 token, RSR integrates with Ethereum and Layer 2 chains like Base and Arbitrum. The protocol enables DTFs—baskets of assets minted 1:1 with RSR governance. Recent upgrades eliminated admin control, decentralizing decision-making entirely to RSR holders.

3. Tokenomics & Governance

  • Supply: Fixed at 100 billion RSR, with ~57 billion circulating (as of June 2025).
  • Staking: Users stake RSR to secure RTokens, earning fees but bearing first-loss risk.
  • Burns: Monthly burns began in May 2025 to reduce supply, enhancing scarcity.
  • Governance: Holders propose and vote on parameters like collateral types and fee structures.

Conclusion

Reserve Rights is a dual-purpose token anchoring a decentralized stablecoin ecosystem, blending governance with economic safeguards. Its focus on hyperinflation-resistant currencies and community-driven upgrades raises a critical question: Can decentralized collateralization outcompete centralized stablecoins in global adoption?

CMC AI can make mistakes. Not financial advice.