12 Key Factual Statements About Reserve Protocol's Proposed Milestone Unlocks for RSR
By Matthew
Hello people of the internet.
During the Reserve Q12026 Community Call, Reserve co-founder Nevin Freeman outlined how Reserve is expected to transition to milestone-based RSR unlocks. That's no 30b RSR burns, no Bitcoin-like emission curves. Just a straight, "if we hit X revenue target, we can unlock X amount of RSR".
Pulling directly from the video, which you can watch below (jump to the 50 minute mark if you want), here are 12 key takeaways and a couple of quotes about the future (proposed) milestone unlocking plans.
- Reserve’s previous RSR unlocking model mirrored Bitcoin’s emissions curve, but Freeman now says that approach is expected to be replaced.
- The team believes the prior unlock schedule created fear more than direct market pressure, because the issue was not large-scale selling but the perception of a “big scary number.”
- The new proposed unlocking framework would tie RSR unlocks to project milestones, rather than a fixed time-based emissions curve.
- The first proposed milestone is $2.5 million in annualized net revenue, measured over the trailing six months: “If we get to the point where we have $2.5 million in annualized net revenue, that is a very clear sign that we have product-market fit for DTFs.”
- Freeman says the current annualized net revenue figure is negative, around “minus seven point something million” at the time of the April 2026 presentation.
- If the first milestone is reached, the plan is to unlock 3 billion RSR, but Freeman says that does not mean the RSR would be sold immediately.
- The unlocked 3 billion RSR would likely be distributed strategically over roughly 1.5 to 2 years, with quarterly reporting used to show RSR trading activity retrospectively.
- The team estimates that reaching $2.5 million in annualized net revenue could require roughly $300 million to $400 million in largely non-incentivized TVL, assuming around 80 basis points of ecosystem revenue after incentives.
- The $2.5 million milestone is based on net revenue, not gross revenue, meaning Reserve would deduct relevant expenses and incentive spend from revenue before counting progress toward the unlock threshold: “If this number hits $2.5 million, it could be that we have $3.5 million in gross revenue and then we’re deducting $1 million in incentives.”
- While the team considered locking in longer-term plans (e.g. future milestones), the team felt it was too difficult to project what metrics or targets would make sense after the first milestone. Instead, the plan is to define the first milestone now, then announce the next milestone only after that first target is reached.
Frequently Asked Questions
- How is Reserve Protocol proposing to change its RSR unlock model?
- Reserve co-founder Nevin Freeman outlined a shift from a time-based emissions curve that mirrored Bitcoin's to milestone-based unlocks. Under the proposed framework, RSR unlocks would be tied to project milestones rather than a fixed schedule, on the logic that the previous model created fear through a 'big scary number' rather than direct selling pressure.
- What is the first proposed milestone for unlocking RSR?
- The first milestone is $2.5 million in annualized net revenue, measured over the trailing six months, which Freeman describes as a clear sign of product-market fit for DTFs. Reaching it could require roughly $300 million to $400 million in largely non-incentivized TVL, assuming around 80 basis points of ecosystem revenue after incentives. At the time of the April 2026 presentation, annualized net revenue was negative, around minus seven-something million.
- How much RSR would be unlocked and how would it be distributed?
- Hitting the first milestone would unlock 3 billion RSR, but that does not mean it would be sold immediately. The unlocked RSR would likely be distributed strategically over roughly 1.5 to 2 years, with quarterly reporting used to show RSR trading activity retrospectively. The milestone is based on net revenue, so incentive spend and relevant expenses are deducted before counting progress. Future milestones would be defined only after the first target is reached.
Reserve News — Independent news about Reserve Protocol
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