Leading names investing in the cryptocurrency space support Reserve, a stablecoin project designed to create a new universal value store.
Stablecoin Will Work With Two Tokens Model
It is stated that Bitcoin bulls (BTC) Peter Thiel and Y Combinator President Sam Altman have already invested in this stablecoin project supported by COINBASE Ventures.
Stablecoin will be supported by up to 100 chains and non-chain assets and as described by cryptocurrency researcher Lark Davis; will use a double token system.
“Why would a stablecoin gain value? Actually, there is a model with two tokens. The first is RSR. This is the token you have and the token you want to buy if you want to invest in Reserve. This token is the governance token that allows owners to vote on proposals and grants arbitrage within the network.
RSR guarantees the collateralization rate of RSV, a stablecoin, and maintains the value of RSV. Therefore, when the price of RSV stablecoin goes above $ 1, the protocol sells RSR to fix the price or new or excess RSV for tokenized assets. RSV has an automatic token burning mechanism that will reduce supply over time, which means that more tokens will be burned when we see how much RSV stablecoin is being used. This is crucial for the long-term price potential of the RSR token. ”
Stablecoin Aims the Priority Latin American Market
The Reserve protocol plans to be implemented in three stages. First, Reserve Token (RSV) is a central stage where it is supported by a small number of collateral tokens fixed to the U.S. dollar. The second is a decentralized phase, where RSV will be supported by a changing asset basket but still fixed at US dollars in price. The third independent phase involves the RSV not being fixed on the dollar anymore. At this point, its goal will be to provide a stable alternative that is not subject to fluctuations in the value of the dollar.
Reserve's implementation will be broadcast in Venezuela and the next stop will be Argentina. Charlie Smith, head of business development at the company's Reserve Protocol, says customers should expect more Latin American markets, the USA and possibly Lebanon.
The RSR token, a cryptocurrency used to facilitate the stability of Reserve's RSV, is currently a temporary placeholder ERC-20 token. However, the protocol of Reserve is expected to start on the Ethereum main network this year, and will be replaced by a fully functional token later on with the ERC-20 token.
