Reserve Protocol expects to move to milestone-based RSR unlocking in the future, after long discussions with the community
Reserve Protocol expects to move to milestone-based RSR unlocking in the future, after long discussions with the community.
Reserve co-founder Nevin Freeman told RSR stakeholders in the Reserve Telegram that milestone-unlocking "is the leading direction we're exploring, tying future token releases to concrete protocol-level financial metrics".
This moves on from the historic model, which followed a BTC-style emission curve, which in simple terms would see 5-6 billion RSR added to circulation each year, dropping over the next few years.
All ongoing RSR emissions are paused while the team work this out. Freeman added: "Proposed milestones are being drafted now and we expect to share them for community input soon."
As Nevin wrote in a community update: "The idea is to mirror what happens with startup companies: future capital (in this case, locked RSR) only becomes available when concrete progress milestones are achieved.
"Think of it like a series of funding rounds where the project has to demonstrate the right kind of metrics before additional resources are unlocked.
"The milestones will be based on hitting overall financial metrics as a protocol ecosystem. The kinds of things investors in FinTech companies typically look for at each stage: revenue, growth rates, gross margins, cost of acquisition, and ultimately massive profitability.
"I want to define metrics that are relatively stable and standardized rather than tying unlocks to specific product bets (like "launch X DTF" or "reach Y TVL for a specific product"), because we need flexibility to experiment and pivot on which products work."
ABC Labs will now draft a concrete set of proposed milestones, with a first draft and request for comments expected on the Reserve Forum within the next few weeks,