Just saw Nevin’s @nnevvinn tweet explaining the protocol in detail,

happy about that. Thanks

However, have a few questions and it would be helpful if this can be answered.

1) The primary goal of the project was to fight the inflation hence RSV was introduced.

In the previous protocol, RSR used to be governance token of RSV but now RSV sounds like have decoupled with RSR and RSR is for only staking stable coins and to get the revenue distributed from RTokens revenue.

Isn’t it the importance of RSR being diluted with new protocol?

2) Since RSV is the soul of Reserve protocol to fight the inflation, how RSR hodlers will get benefited in the long run from RSV growth, apart from just RTokens staking rewards?

3) Instead of solely focusing on pushing the RSV adoption more and more across the world as a stable coin, what is the idea behind introducing multiple Stable Coins/RTokens?

How does the RSR will go grow , apart only just based on RTokens revenue and not co-relating with RSV growth?

I’m with RSR for 2 years and a big admirer of the idea behind it, I’ve been spreading a word about RSR occasionally using my twitter account that has nearly 5k followers.

Thanks, now just trying to understand the protocol in a more detail before I go and share anything with my friends.

Hello Nirvaan - great questions! Let me try and clear these up for you: 1) In the 2018 version of the whitepaper, Reserve Rights (RSR) was described to be used for two purposes: (a) maintaining the peg of RSV through minting & burning RSR and (b) governance of RSV. In the current version of the protocol, RSR still has two purposes: (a) maintaining the peg of RToken through an insurance mechanism and (b) governance of RToken. The role of RSR was not diluted, it is still playing the exact same roles as in the old protocol, just in a different way. This new role boils down to this: in the old version of the protocol you had to insure all RTokens (even the ones with terrible backing), while in the new version you, as an RSR holder, have the choice to insure the RToken you want (or you could even decide not to insure any RToken at all!). 2) It is true that RSV is currently a very important aspect of the project in fighting high inflation. However, RSV is basically just a slightly more secure stablecoin than, let's say, USDC or USDP due to the fact that it's backed by a diversified basket of stablecoins. However, with the RToken design, you can create superior stablecoins than RSV. Take for example the idea of the new Reserve stablecoin that will be launched on mainnet. That token will be at least as stable as RSV (it can not lose its peg if it's sufficiently insured by RSR), but will generate a yield ranging from an estimated 1-7% per year on top of that stability. And it will be useable as a currency (as it doesn't need to be staked or locked up)! Imagine just holding cash in your physical wallet and getting a few dollar bills automatically added to it every few weeks. The fact is that, before cryptocurrency, it just wasn't possible to create what we call "stable+" money (meaning money that automatically & passively earns yield). But now that it's here, it's very likely that a lot of people will prefer this option over RSV - at least for the part of their money that they'd want to save. But honestly, this is just the start with RToken - you can go so much further (e.g. creating an RToken that combines all fiat currencies in the world into one currency to diversify risk of any one fiat currency). But anyway, ask me if you'd like to know more about this. For now I'll just answer the rest of your questions. One more thing on this point to note is that, up to now, RSV was only really targeted towards Reserve app users (not the general crypto world). Since the team believes that stable+ currency will not only be valuable for Reserve app users, but also for crypto-natives, we will also try to integrate it with that crowd - meaning a whole new potential customer base. Just think of being able to stake a stable+ asset in a DeFi protocol. You'd get the base % of the stable+ asset + the borrowing fees that you usually get on DeFi protocols. So why would you stake USDC for 5% if you could stake the stable+ asset for (e.g.) 3% (base) + 5% (borrowing fees)? 3) There are a ton of usecases of RToken, some of which I've explained above, which can be summarized as "creating better currencies than existing fiat currencies". Another large one is the long-term goal of Reserve, which is to create a stablecoin that is backed by 50+ tokenized real-life assets. There's a long story to this, but it comes down to the fact that, by selecting the correct basket of anti-correlated assets, you can create a basket that is so stable that it represents the global GDP (at least in theory). That would be super cool, because the global GDP dipped only ~2% during the financial crash of 2008. In short, it'd be super stable money - and it'd stay that stable across centuries. 4) RSR will only grow based on RToken growth, but I believe RToken growth will far outweigh the current RSV supply after a certain time. The way I see it, RSV is the simple currency we used to kick-off the Reserve app, but RToken are the future.

Thanks mate for taking time to clarify this, it makes a bit of sense now.. The last statement of your message is the one I’m impressed with 😉 “4) The way I see it, RSV is the simple currency we used to kick-off the Reserve app, but RToken are the future.” One final thing - if RSV is a sort of trial and error thing to kickoff the idea, what is the impact on RSR from the current usage of RSV that is already being underway in Venezuela, Peru, etc ? 1) This RSV growth will not have any positive impact on RSR? 2) Do these countries will have access to RTokens/Stable coins once they are launched? Or will it be only RSV? Cheers

RSV growth in itself will not have an impact on RSR (at least in the current design). However, growth of the Reserve app customer base will have an impact on RSR, since the idea is to offer both RSV & the new stable+ RToken in the app (RSV as a checking account & the new stable+ RToken as a savings account). You can expect Reserve app customer to put a significant amount of their wealth into that new RToken.

Sounds good buddy, thanks for all the info.. Let’s hope for the good things to happen in the future. I’m sure majority of the community are excited for mainnet launch to see how the RToken idea will unfold. Hopefully team is prioritising the mainnet more than anything else 😉 All the best to Team. Thanks 🙏

I can assure you that the protocol team is doing that. It's mainnet development before anything else! 😁 Thank you - looking forward to chatting with you again soon.