Reserve Rights (RSR)

What is Reserve Right

Reserve is a stablecoin introduced in January 2019 to iterate on the stablecoin projects that preceded it. The team decided that to build a lasting stablecoin, several design choices were necessary: an asset-peg that, short term, is set to a fiat currency, but long-term, is set to a basket of assets; fully collateralized backing; decentralized issuance mechanism. Thus, Reserve starts as a fiat-pegged stablecoin with the goal of transitioning to a diverse asset-backed stable currency in the future. The price target is originally set to equal $1.00.

What Is RSR’s Mission?

Reserve is primarily a human rights movement that aims to tackle hyperinflation at a global scale. Hyperinflation is an economic catastrophe that can destroy people’s life work overnight by devaluing their savings and inherently decrease their net worth.

Hyperinflation often occurs when countries print money to pay debt or when there’s societal instability caused by regime change or war. The economic effects of hyperinflation affect all citizens because the price of goods surges and the value of the currency in exchange for “stable” fiat currencies such as the USD or EUR plummets.

Countries worldwide struggle with inflation, but hyperinflation has mainly persisted in Latin America. The recent war in Ukraine is another example of hyperinflation affecting both the Ukrainian and the Russian populace. Once currencies lose value compared to the US Dollar, the price of goods skyrockets and citizen’s living standards plummet.

Benefits of RSR

The Reserve team leverages blockchain technology to process dollar payments digitally without any intermediaries. Their task is to develop financial instruments that people in affected regions can use to get instant access to dollars and preserve their standard of living.

RSR uses collateral-based stablecoins such as True USD (TUSD) that are backed by cash and allow them to back the value of their RSV stablecoin. A user in an affected country could instantly get access to dollars and withdraw them to their bank account using the Reserve app.

In the future, RSR plans to expand beyond Latin America and target primarily undeveloped regions that lack access to stable currencies. This is tied to the mainnet launch when the Reserve protocol will fully launch on the Ethereum mainnet and the mobile app will expand to other global regions.

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