
Trail of Bits Points to Reserve Protocol for Blockchain Development Best Practices
By Matthew
Reserve News — Independent news about Reserve Protocol
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By Matthew
Reserve News — Independent news about Reserve Protocol
Back to all articles
By Matthew
Reserve News — Independent news about Reserve Protocol
Back to all articles
The five new AI DTFs (on-chain ETFs) bundle tokenized US-listed equities into thematic portfolios covering different parts of the AI supply chain.
Reserve Protocol has launched 5 AI DTFs, allowing most people in the world to buy on-chain indexes of the largest AI narratives.
The boom in AI has produced no shortage of investment products, be it traditional ETFs that track semiconductor companies, or individual tokenized stocks that let investors buy shares of firms like Nvidia and Tesla on-chain. Reserve's new AI Decentralized Token Funds take a different approach - combining the best of ETF-style indexes with on-chain validation, and dividend sharing.
Launched on July 6, 2026, on BNB Chain, the five new AI DTFs bundle tokenized US-listed equities into thematic portfolios covering different parts of the physical AI economy. A DTF is an on-chain investment basket that groups multiple underlying assets into a single tradable token.
Rather than asking investors to choose individual companies, each fund focuses on a different layer of the infrastructure that makes up modern AI, from chip manufacturing and electricity generation to photonics, cloud compute and robotics.
The underlying assets are sourced through Ondo Global Markets' tokenized equities platform, while Reserve provides the on-chain framework for creating, governing and trading the funds
The launch is the first approach to package an industrial supply chain into programmable, on-chain investment products.
So each DTF reflects a different bottleneck in AI's expansion rather than another attempt to identify the next successful software company. The investment case extends beyond whichever model currently dominates headlines to the wider industrial build-out.
While the baskets are rebalanced and governed by RSR stakers, each portfolio has structured intent, available in each DTF’s markdown (.md) file, including:
BUILDOUT is the broadest of the five funds. Rather than concentrating on a single bottleneck, it invests across the companies building the infrastructure that makes artificial intelligence possible.
Its portfolio spans semiconductor designers, manufacturers, equipment suppliers and other businesses involved in expanding AI capacity. Investors looking for diversified exposure to the wider AI build-out are likely to view BUILDOUT as the starting point.
DTF Name: Reserve AI Power DTF ($POWER)
Contract address: 0x290bcc0fd5096cc3261ae2021841c7bc67cb0f51
Mint / redeem at:
https://app.reserve.org/bsc/index-dtf/0x290bcc0fd5096cc3261ae2021841c7bc67cb0f51/overview
.md file: https://app.reserve.org/dtf-llm/power-dtf.md
Every new AI data center increases demand for electricity.
POWER focuses on the companies generating, transmitting and managing the energy required to support that expansion. As AI infrastructure grows, electricity increasingly becomes a limiting factor rather than a background utility, making power infrastructure its own investment theme.
DTF Name: Reserve Photonics DTF ($PHOTON)
Contract address: 0xa0fe4e0aeca5479705ce996615b2eacb6b6a10fb
Mint / redeem at: https://app.reserve.org/bsc/index-dtf/0xa0fe4e0aeca5479705ce996615b2eacb6b6a10fb/overview
.md file: https://app.reserve.org/dtf-llm/photon-dtf.md
Moving data between AI processors is becoming almost as important as the processors themselves.
PHOTON focuses on companies developing optical networking technologies that increase bandwidth while reducing latency and power consumption. As AI clusters continue growing, photonic networking is expected to play an increasingly important role in connecting high-performance computing systems.
DTF Name: Reserve AI NeoCloud DTF ($NEOCLOUD)
Contract address: 0xf571fe3f0d74521bc7310b111faea931c748f27b
Mint / redeem at: https://app.reserve.org/bsc/index-dtf/0xf571fe3f0d74521bc7310b111faea931c748f27b/overview
.md file: https://app.reserve.org/dtf-llm/neocloud-dtf.md
Not every company builds its own AI infrastructure.
NEOCLOUD focuses on businesses providing GPU compute and cloud capacity, allowing organizations to rent AI infrastructure instead of constructing their own data centers. As demand for AI compute continues expanding, cloud providers have become a critical layer of the wider AI economy.
DTF Name: Reserve Robotics DTF ($ROBOTS)
Contract address: 0x75617e7653f86f074cc30b9fd4ebf52ba9b62247
Mint / redeem at:
https://app.reserve.org/bsc/index-dtf/0x75617e7653f86f074cc30b9fd4ebf52ba9b62247/overview
.md file: https://app.reserve.org/dtf-llm/robots-dtf.md
The final stage of the AI story is deployment.
ROBOTS focuses on companies developing industrial automation, robotics and intelligent machines that apply AI outside the data centre. While software generates much of the attention surrounding artificial intelligence, robotics represents the point where AI begins interacting directly with the physical economy.
Although the funds trade on-chain, their underlying holdings are not cryptocurrencies.
Each DTF is backed by tokenized US-listed equities issued through Ondo Global Markets, allowing the portfolios to hold familiar public companies inside an on-chain structure. Investors interact with a blockchain token representing the basket rather than buying dozens of individual stocks themselves.
The products are available across approximately 145 jurisdictions, excluding the United States because of current regulatory constraints surrounding tokenized securities. Reserve says it hopes to expand availability as regulations evolve.
Outside the US, access to American equity markets can still involve higher costs, brokerage restrictions or limited product availability. Tokenized funds aim to reduce some of those barriers by allowing eligible users to access diversified baskets through a crypto wallet instead of a conventional brokerage account.
DTFs remain on-chain throughout their lifecycle. They can be minted and redeemed through Reserve's protocol, traded around the clock on supported decentralized exchanges and governed by the protocol itself.
They are not regulated exchange-traded funds and do not carry the legal structure associated with traditional ETFs.
Each DTF can be governed, periodically rebalanced and updated through the protocol. Rather than existing as static products, the funds are designed to evolve according to their published methodologies and governance process.
The launch documentation also highlights one practical advantage of tokenized funds. Once tokenized equities become available, new thematic baskets can be assembled and launched considerably faster than comparable traditional investment products.
The AI funds also introduce a new role for Reserve Rights (RSR), the governance behind the protocol, and the ultimate recipient of fees.
Users can lock RSR to receive vote-locked RSR (vlRSR), giving them governance rights across the DTF ecosystem. All five AI DTFs feed a shared vlRSR staking vault on BNB Chain.
Each DTF currently charges a 0.3% mint fee and a 0.6% annual TVL fee. From the protocol fees, 33% is used to buy back and burn RSR, while the remaining governance allocation (67%) is converted into RSR and automatically added to vote-locked positions over time.
The detailed mechanics of fee routing, burns and vlRSR rewards deserve their own explanation, and will be covered later in this series.
The more durable question is whether Reserve has built a repeatable framework rather than five isolated products.
If tokenized public equities continue expanding, there is little preventing the same architecture from being used for healthcare, energy, defense, biotech, or regional equity baskets. AI happens to be the first theme, but is unlikely to be the last.
That possibility makes this launch interesting beyond the five tokens themselves.
Reserve is testing whether thematic investing can move onto public blockchains without losing the diversification and familiarity that have made traditional equity funds popular for decades.
For now, the AI supply chain has become investable on-chain.

For June 2026, 14.3M RSR was burned, as noted in the Reserve Telegram channel. The actual burn took place on June 25, 2026.
Every month, a portion of the RSR supply is burned, a product of the fees primarily generated by the minting and holding of Index DTFs.
| Burn Date | RSR burned | USD value |
| Jun 25, 2026 | 14,346,755 | 15,550.67 |
| May 21, 2026 | 9,493,217 | 17,109.44 |
| Apr 23, 2026 | 14,398,322 | 25,168.27 |
| Mar 23, 2026 | 16,096,854 | 25,223.77 |
| Feb 20, 2026 | 12,674,832 | 19,861.46 |
| Jan 23, 2026 | 3,903,976 | 6,117.53 |
| Dec 21, 2025 | 9,829,776 | 15,403 |
| Dec 1, 2025 | 4,744,733 | 7,435.00 |
| Oct 21, 2025 | 2,975,478 | 4,662.57 |
| Sep 25, 2025 | 1,965,638 | 3,080.16 |
| Aug 22, 2025 | 1,182,789 | 1,853.43 |
| Aug 3, 2025 | 2,734,623 | 4,285.15 |
| Jul 25, 2025 | 527,802 | 827.07 |
| Jun 20, 2025 | 3,746,598 | 5,870.92 |
| May 20, 2025 | 1,281,683 | 2,008.40 |

Think of a Reserve DTF like the DRAM ETF, but on-chain, and let's suggest this AI DTF reaches $5 billion in six months. What happens next?
When the Vanguard asset management group started in 1975, it popularized the idea of mutual funds and, later on, ETFs - where a diversified portfolio of assets can be held together. They helped make it easy for an individual investor to buy in.
There is an argument that Vanguard founder John C. Bogle is one of the biggest philanthropists of all time, as he reduced the fees that were standard at the time to a minimum, saving investors $500 billion in fees in 50 years. And by forcing other providers to follow suit, small investors saved another $500 billion in fees.
Why is this relevant? Let's take the recent Roundhill Memory ETF (DRAM), launched in April 2026, which offers a portfolio primarily of AI semiconductor/memory stocks (Samsung, Micron, Seagate, SanDisk) and has grown to $15.3 billion in assets under management. The demand is there, and everyday investors can choose to join in and set and forget.
Everyday investors... But $DRAM is a U.S.-listed ETF, limiting buyers to the U.S. and some countries or services that can access U.S. brokers. In effect, it is U.S.-only, unless you can jump a bunch of middleman hurdles.
So it's hard to access many ETFs - and not only access them, but access them without middlemen, without fuss, with none of the fees that come from all the brokerage that comes with ETFs.
Which is different with Reserve Protocol. Swap $100 USDT to Reserve's DTF, and you are in the market. We started with that Vanguard example of fee savings, because Reserve could abstract away even more fees, while making those portfolios available to people in ~145 countries who were previously cut off.
So let's play some hypotheticals, and place DTF success in the light of RSR holders.
RSR's price is currently ~0.001c, with a supply of around ~65 billion. DTFs burn RSR according to their TVL management fee and minting fee.
For example, the CMC20 DTF has a market cap of $15 million and burns around 15 million RSR a month.
Think of a DTF like the DRAM ETF, but on-chain, and let's suggest this AI DTF reaches $1 billion in market cap after two months, and $5 billion in six months.
These figures may or may not be realistic - we shall see. The demand is likely there for global access to AI stocks, without the pain of seeking out individual shares to build your own portfolio. Buy one ERC-20 (or maybe BNB) token, and own a slice of 10 or 20 AI companies or however the DTF ends up looking.
So adjust your confidence zone accordingly, but based on this, how can we extrapolate how this might affect the burn and price of RSR over the next six months?
Let's build a rough model:
RSR price = ~$0.001
Supply = 65 billion
Market cap = $85 million
CMC20 market cap = $15 million
CMC20 burns ($) ≈ $15,000 a month
CMS20 burns (RSR at current price) ≈ 15 million RSR a month
Roughly 0.1% of the TVL per month per DTF flows into burning RSR.
From $15 million to $5 billion is roughly 333× larger than CMC20.
Burn rate:
$15,000 x 333 = $5 million a month
At current price, a burn pressure of 15M RSR × 333 ≈ 5 billion RSR burned per month.
Six-month burn projection:
| Month | AI DTF TVL | RSR Burn |
| 2 | $1 billion | 1 billion |
| 3 | $2 billion | 2 billion |
| 4 | $3 billion | 3 billion |
| 5 | $4 billion | 4 billion |
| 6 | $5 billion | 5 billion |
| Total | $5 billion | 15 billion |
That could reduce the circulating supply of RSR to 50 billion, a 30% reduction in half a year.
The catch, of course, is that the burn will not stay linear because if the market keeps valuing RSR at $70 million (as it does today) while supply falls from 65B to 50B, the price rises automatically.
At unchanged market cap:
65B supply → $0.001
50B supply → $0.00133
That's already a 33% increase.
But that's the conservative scenario: a more realistic market reaction is that markets don't wait for burns to happen.
If traders see a $5B AI DTF, thanks to many investors in many countries accessing tokenized AI stock index portfolios, and up to 5B RSR a month disappearing, they start pricing future scarcity.
What multiple of annual protocol revenue should RSR trade at?
Traditional ETF businesses often trade at 10-30x earnings.
If an AI DTF generated $50 million annually in RSR burns, the protocol valuation could move into the hundreds of millions or even billions.
That's where things get nonlinear, with a conservative scenario of the market cap rising from $65M to $200M.
A more aggressive scenario would be the RSR market cap reaches $1 billion with a circulating supply of 50 billion RSR (and 15 billion RSR burned forever), which would price RSR at about 2c per token - or a 20x from here.
The extreme scenario, one that RSR bulls dream about, is that AI DTFs become the default way for non-U.S. investors to access tokenized AI equities, and additional DTFs launch behind it. At that point, $5B TVL becomes the beginning, rather than the top.
If DTFs can find a $10-20B aggregate TVL, the market stops valuing RSR as a speculative governance token and starts valuing it as a claim on a rapidly growing on-chain asset-management business.
Even if the market completely ignored the DTF narrative and only reacted mechanically to shrinking supply, they would see the tokenomics become dramatically more deflationary than they are today. Based on the current CMC20 burn data and Reserve's fee-to-burn mechanism, the market would struggle to ignore deflationary supply of this magnitude.
= The market starts valuing Reserve similarly to an on-chain version of BlackRock or State Street Global Advisors, rather than a crypto protocol.

But what we want first is:
The key thing to watch isn't price:
It's whether that first AI DTF actually gets real demand from people who can't easily access U.S. markets. If that use case proves genuine, then the market eventually starts valuing Reserve as an asset management platform.
Next time you're bored, drop this into your favorite AI agent:
RSR's price is currently $0.001, with a supply of around 65 billion. DTFs burn RSR according to their TVL management fee and minting fee.
CMC20 has market cap of $15 million and burns around 15 million RSR a month.
A DTF launches next month, on on-chain index of tokenized AI stocks, available 24/7 to 145 countries which currently cannot access AI stocks in the US. Think of it like the DRAM ETF, but on-chain.
This DTF is expected to have 1 billion TVL in a month, and 5 billion TVL in six months.
Based on this, can you extrapolate how this might affect the burn and price of RSR over the next six months?

More than $150,000 worth of RSR has now been burned through Reserve Protocol’s DTF fee system, an increasingly visible sign of business on the platform.
More than $150,000 worth of RSR has now been burned through Reserve Protocol’s DTF fee system, marking an increasingly visible sign that the protocol’s on-chain index business is beginning to feed back into RSR supply.
The latest cumulative figure shows 85.56 million RSR burned so far. with $152,119 of collected fees powering the burn. The figure does not come from a one-off event or any discretionary token burns, but from recurring activity around Reserve’s DTFs, such as minting and holding fees on index products like CoinMarketCap 20 Index DTF, better known as CMC20.
Reserve’s mechanism is tied to demand for its products, namely when users mint, redeem, or hold certain DTFs. Part of the fees are used to buy and remove RSR from circulation.
The protocol is still early, and the dollar figure remains modest by large-cap crypto standards, but the trend can be seen in the chart, and the burn schedule has become more visible.
The latest reported burn, for May 20, removed 9,493,217 RSR, after a burn totalling $15,559. The chart shows the cumulative burn curve steepening from late 2025 into early 2026, with most of the total now coming from the past several months.

For CMC20, the minting fee is 0.3%, with one-third going to the RSR burn, effectively making the burn around 0.1% of the minted amount.
CMC20 is the clearest example of a DTF, packaging exposure to the top crypto assets into a single on-chain index token, thereby giving users a simpler way to hold broad market exposure without manually managing a portfolio. CoinMarketCap tracks CMC20 as a live asset, with real-time price data, market cap, and trading volume.
DTFs are on-chain versions of familiar fund structures and while they are not ETFs in the legal sense, the comparison is useful: a DTF bundles assets into a single token, can be minted and redeemed on-chain, and can be governed by token holders. CMC20 is RSR, with RSR holders able to vote-lock tokens to become governors of the DTF.
The current burn total is a proxy for one of Reserve’s most important questions: are people actually using the products? Metrics-wise, from May 2025 to January 2026, the burn grew from almost nothing to around 30 million RSR. By March, it had crossed 60 million. After the May burn, the total sits above 85 million.
The next test is whether Reserve’s DTF catalog can expand beyond crypto-native indexes. That is where the incoming AI-themed equity DTFs become important.
As we reported last month, ABC Labs plans to launch AI-themed equity DTFs this summer, built around tokenized U.S. stocks. The first AI DTF is expected after tokenized AI stocks arrive, with the broader idea being simple: instead of buying individual tokenized equities one by one, users can buy an on-chain index tracking a theme.
If those products attract minting volume, the burn can rise again. AI equities are easier for many investors to understand than niche crypto baskets. Nvidia, Microsoft, AMD, Palantir, or other AI-linked names already have mainstream attention. A tokenized AI stock basket gives Reserve a more familiar story to tell: thematic exposure, on-chain settlement, 24/7 trading, and programmable governance.
Reserve Protocol is a DeFi infrastructure project for creating and governing decentralized token baskets, including stable asset products and index-style DTFs. Its recent focus has shifted heavily toward on-chain indexes: crypto baskets such as CMC20, real-world asset structures, and now planned equity-themed products.
Source: RSR Burn Dashboard

Reserve Protocol DTFs are like ETFs, but on-chain, and tradeable without barriers 24/7. The first AI DTF is expected in June.
AI really is the focus of… basically everyone. But right now, it is hard to invest in the narrative, unless you have a broker to buy specific company shares or can buy specific, ringfenced ETFs in certain countries.
That may all change in the next month or two, with ABC Labs planning to launch a series of AI-themed equity DTFs (Decentralized Token Folios) this summer, built on tokenized US stocks and aimed at non-US, crypto investors who cannot access the same exposure through traditional brokerage channels.
The AI DTFs will focus on different segments (for example, DRAM, photonics, power), and ABC Labs may also offer a wider ‘AI infrastructure DTF’ which captures exposure across the full stack.
DTFs are like ETFs, but on-chain, and tradeable without barriers 24/7. With a range of tokenized AI stocks arriving in June, the first AI DTF is expected a few days after. Instead of buying individual tokenized stocks, buy the index and capture the segment of the industry you are most bullish on.
DTFs can be built and minted using the Reserve Protocol, at https://app.reserve.org.
On the AI front, Reserve cited Situational Awareness, a private, major AI thesis hedge fund, that has $13.6 billion in assets under management.
The recent launch of DRAM is also a recent example, which quickly became a $9 billion ETF.
With ETFs beginning to crop up around the AI industry, it is inevitable their on-chain equivalent - DTFs - will arrive.
But, as Reserve Protocol pointed out on Twitter, “$DRAM is a US-listed ETF, so you can only buy it in countries that are plugged into the US brokerage network. Fund access has progressed from private to public, but still leaves much of the world out.
“We can do better. By creating funds on-chain with tokenized US stocks that are backed 1:1 with underlying equities and accessible outside of the US, we can extend access to most of the globe. That’s what we’re cooking right now, alongside the leading tokenizer of US equities.
“Stay tuned for globally accessible AI supply chain funds in the coming weeks, freely accessible in about 145 countries to about 6 billion people.
“If you are in the trenches on this trade, you can guess which vertical we’ll lead with.”
Our guess on the vertical is photonics, but we will see. Whichever the vertical is, that is likely our first glimpse of the logo up above.
The tokenized US stocks used in the DTFs will be backed 1:1 with underlying equities and may be accessible in as many as 145 countries, with a population of six billion people.
Sources: Telegram, Reserve Forum, Twitter

For May 2026, 9.5M RSR was burned, as noted in the Reserve Telegram channel. The actual burn took place on May 21, 2026.
Every month, a portion of the RSR supply is burned, a product of the fees primarily generated by the minting and holding of Index DTFs.
| Burn Date | RSR burned | USD value |
| May 21, 2026 | 9,493,217 | 17,109.44 |
| Apr 23, 2026 | 14,398,322 | 25,168.27 |
| Mar 23, 2026 | 16,096,854 | 25,223.77 |
| Feb 20, 2026 | 12,674,832 | 19,861.46 |
| Jan 23, 2026 | 3,903,976 | 6,117.53 |
| Dec 21, 2025 | 9,829,776 | 15,403 |
| Dec 1, 2025 | 4,744,733 | 7,435.00 |
| Oct 21, 2025 | 2,975,478 | 4,662.57 |
| Sep 25, 2025 | 1,965,638 | 3,080.16 |
| Aug 22, 2025 | 1,182,789 | 1,853.43 |
| Aug 3, 2025 | 2,734,623 | 4,285.15 |
| Jul 25, 2025 | 527,802 | 827.07 |
| Jun 20, 2025 | 3,746,598 | 5,870.92 |
| May 20, 2025 | 1,281,683 | 2,008.40 |

During the Reserve Q12026 Community Call, Reserve co-founder Nevin Freeman outlined how Reserve is expected to transition to milestone-based RSR unlocks.


For April 2026, 14.4M RSR was burned, as noted in the Reserve Telegram channel. The actual burn took place on April 23, 2026.
Every month, a portion of the RSR supply is burned, a product of the fees primarily generated by the minting and holding of Index DTFs.
Burn Date | RSR burned | USD value |
Apr 23, 2026 | 14,398,322 | 25,168.27 |
Mar 23, 2026 | 16,096,854 | 25,223.77 |
Feb 20, 2026 | 12,674,832 | 19,861.46 |
Jan 23, 2026 | 3,903,976 | 6,117.53 |
Dec 21, 2025 | 9,829,776 | 15,403.26 |
Dec 1, 2025 | 4,744,733 | 7,435 |
Oct 21, 2025 | 2,975,478 | 4,662.57 |
Sep 25, 2025 | 1,965,638 | 3,080.16 |
Aug 22, 2025 | 1,182,789 | 1,853.43 |
Aug 3, 2025 | 2,734,623 | 4,285.15 |
Jul 25, 2025 | 527,802 | 827.07 |
Jun 20, 2025 | 3,746,598 | 5,870.92 |
May 20, 2025 | 1,281,683 | 2,008.40 |