Home Coins Reserve Rights Token (RSR) Preparing to offer RSV incentives in order to accelerate Reserve app growth...

Preparing to offer RSV incentives in order to accelerate Reserve app growth | by Nevin Freeman | Reserve Currency | Jan, 2021

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Nevin Freeman

We intend for 2021 to be a year of significant growth in Reserve app usage. We don’t know how fast we can grow yet, but our eventual target over the next few years in Venezuela and Argentina is to reach about 10 million people using Reserve regularly in each country. I personally believe we are on the verge of seeing whole segments of populations using crypto dollars as their main savings and spending account, and I think RSV could lead this trend. If our model works at scale, then Venezuela and Argentina will just be the beginning.

In order to accelerate growth, we will be unlocking 3.81% of total RSR supply to offer referral incentives to Reserve app users. These treasury RSR are not intended for normal operating expenses, which are already covered by our existing cash budget. In addition to Reserve app incentives, these funds may be deployed for other liquidity bootstrapping incentives, or used for other non-operational initiatives designed to facilitate a successful mainnet launch.

This incentive budget probably won’t all be spent in 2021, but we plan to start using it before the end of this year. We’re doing the unlock many months in advance so that we have time to slowly and patiently convert RSR to RSV without any significant impact on RSR markets. As the largest holder of RSR, we take our responsibility to operate transparently and minimize our impact on markets very seriously.

PayPal said in their SEC filings around the time of their IPO: “We began the year 2000 with 12,000 users and just six months later our account base had grown to 2.2 million. As of December 31, 2001, we had 12.8 million accounts.”

Source: eBay Annual Reports on Form 10-K for the periods ending December 31st, 2002, 2012, & 2013.

This growth was possible because PayPal had a breakthrough product, which was designed to be viral. But it was accelerated by financial incentives. PayPal offered users $10 for each person they referred, and $10 to each new person that joined.

They spent tens of millions of dollars to ensure they onboarded those initial users, and then wound down the incentives pretty quickly from there. As you can see from the graph above, the wheels kept turning and users kept joining.

We anticipate offering RSV incentives to accelerate growth in the later half of 2021. Right now, the team is still very focused on removing operational and technological barriers to scalability of our app — even if 10 million people wanted to join right now, we couldn’t support them! But we are working hard to be able to support more and more active users, and we anticipate reaching a point sometime this year where we are ready to supercharge growth. If and when that happens, we want to be ready to go.

In order to fund such RSV incentives, we will be slowly converting a portion of the project treasury from RSR to RSV.

Unlocking 3.81% of RSR supply

We are going to make a withdrawal of 3.81% of the total RSR supply from the project’s treasury — the “slow wallet” contract — in about four weeks from the time of this post. These are 100% ecosystem tokens, not any tokens belonging to team members or seed investors.

No dumping (market selling) of RSR

To make this funds conversion with minimal impact on the RSR market, we will slowly and passively offer this RSR on major crypto exchanges over the course of 2021. We will not market sell RSR.

As we’ve stated before, the project has years of cash runway for operating expenses, so this is not a need-based fundraise. If the crypto market turns down rather than going up from here, we may choose to stop offering this RSR into the market, or not to offer any at all to begin with.

Our treasury tokens are governed by a cryptographically-enforced 4-week delay on our project treasury contract (the “slow wallet”). This means that to withdraw funds from our treasury, we have to broadcast our intent to do so well in advance of making a withdrawal. We have to make an Ethereum transaction that can be watched for by watching the contract, and only after 4 weeks will the tokens actually be released to the destination address.

We did this to provide a guarantee to our community that funds would not be released without advance notice. Whenever we withdraw funds from our treasury, you will always have plenty of time to react. From a game theoretic perspective, this dramatically reduces the ability of any bad actor to benefit from withdrawing treasury funds with malicious intent, thus making it less likely to occur, and making it easier for the community to assess our intentions from afar.

At the time of mainnet launch, there will be a contract change for RSR, at which point this particular cryptographic guarantee will no longer apply. We may choose to apply the same system again, or may go with a new system at that point.

Note: While the comment on line 73 of the slow wallet indicates an intended delay of two weeks, we changed the delay to four weeks before deploying, which you can verify by inspecting the code itself on line 40.

Reminder: Because RSR is currently traded only on non-US exchanges, non-US people are prohibited from acquiring RSR for the benefit of US people.

We are aiming for 2021 to be a year of growth, and preparing to take a page from the PayPal playbook in order to make that happen. We have infrastructure in place to passively offer RSR without impacting market price. Because this slow offering takes time, we are initiating an unlock now, even though we don’t anticipate offering growth incentives until later in the year.

📕 Would you like to know more about Reserve? Read about our protocol and study our whitepaper.

🔊 Looking for the latest news? Follow our Website, Twitter, and Blog for updates. Join our Telegram to discuss Reserve with other community members.

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Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
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