# Discussion: RSR emissions approach for the second half of the token supply

**URL:** <https://forum.reserve.org/t/discussion-rsr-emissions-approach-for-the-second-half-of-the-token-supply/756>\
**Category:** Ideas & suggestions\
**Created:** [June 17, 2024, 10:49am UTC](https://forum.reserve.org/t/discussion-rsr-emissions-approach-for-the-second-half-of-the-token-supply/756 "2024-06-17T10:49:06Z")\
**Posts on this page:** 1\
**Showing post:** 38

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**Author:** ![nevin.freeman](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.reserve.org/nevin.freeman/32/24_2.png) [@nevin.freeman](https://forum.reserve.org/u/nevin.freeman)\
**Post date:** [June 27, 2024, 4:16pm UTC](https://forum.reserve.org/t/discussion-rsr-emissions-approach-for-the-second-half-of-the-token-supply/756/38 "2024-06-27T16:16:14Z")

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Thanks everyone for your thoughts and questions so far.

# Timing

Here and on X I’ve seen some ask: what’s the timeline for getting to an answer on how the remaining 50% of RSR should be released and utilized? Here’s how I’m currently thinking about timing:

- We’ll continue discussing this and thinking it through as a community for as long as it takes to get to a solid plan. Confusion Capital has the responsibility to approve the final plan, and I take responsibility for facilitating the discussion that will go into forming the plan.
- I want to give the topic time for in-person discussion at Monetarium (July 19-21) and at the ABC Labs coworking week (July 22-26).
- As discussed [starting in January](https://blog.reserve.org/2024-two-new-companies-a-new-grant-program-the-new-slower-wallet-and-new-rsr-incentives-caae4cfd706b), ABC Labs is developing a new system for allowing RSR holders to collectively vote on RSR emissions allocations. The current idea is that 20 billion RSR would be placed in an immutable emissions contract that would slowly emit the RSR over many (e.g. 20) years, and RSR holders would vote on where the emissions are directed – to uses like incentivizing liquidity providers in DeFi. They’ve asked Confusion Capital to finalize the decision on launching this system and settle on an amount of RSR and emissions curve as soon as possible, since they will need to write code based on what’s decided, and this decision will likely be the bottleneck on releasing this new system. I’ve let them know that the final decision to allocate any RSR here along with the details of how it would be emitted needs to be taken along with this broader planning for all ≈50 billion remaining RSR. So this is one source of urgency, but again, it’s crucial that we take as much time as needed to get this plan right, as it’s so consequential to how Reserve plays out over the coming decades.
- In summary, I think it will take a few months for us to finalize this plan, but I will aim to help us narrow down the options significantly early on, so that we aren’t swimming in too much uncertainty in the meantime. ABC Labs needs to allocate dev time, and the community needs to have a good sense of where we are headed.

# Questions raised

Many have asked very reasonable questions about how Confusion Capital and ABC Labs operate, their finances, their plans, etc. Historically we have intentionally not discussed these things in public for specific strategic reasons that have been carefully thought through. This discussion is forcing a re-think of those strategic reasons since (a) as many have noted, it’s impossible for community members to form meaningful opinions on some of the questions I’ve posed without access to a bunch of info that hasn’t been shared so far, and (b) there would be a lot of additional value to transparency beyond this discussion (though that’s nothing new). I don’t yet know if we are going to decide to publish this kind of info or not – we’re started evaluating and will come to a decision soon.

# Digesting proposals made so far

I’ve read all of the comments above twice and have been distilling the various positions I see represented here. I’ll list each position as simply as possible, [steelman](https://en.wikipedia.org/wiki/Straw_man#Steelmanning) it, and then share my take on it.

- Position: It’s about the narrative not the math. Releases scare people away, burns give people confidence, even when each is too small to mechanistically matter.

- Position: The 50b is a storm cloud over the project. It scares people away.

- Position: The companies involved in the Reserve project should fund themselves through means other than selling RSR. They can sell equity or generate revenue.

- Position: Releasing tokens is necessary to fund incentives and development, so we just need to make sure to do it at the right speed. Too slow = not enough gas for the project, too fast = crash in RSR price.

- Position: Burn all remaining RSR. If partners are to invest, they can buy off the open market. If Confusion Capital or other entities need RSR for operations, they can buy it off the open market.

- Position: Create an DAO and let existing RSR holders directly allocate all 50b locked RSR. Let any companies and individuals involved in the Reserve ecosystem request funding from the DAO and leave it to the DAO to decide whether to allocate it.

- Position: Leave a big pool of RSR with Confusion Capital to allocate at its discretion, sometimes in large chunks at a time, to capitalize on big opportunities. Don’t always require immediate transparency, in case deals need to happen privately.

I haven’t had time this week to finish steemanning and thinking about every proposal made, but I’ll get to all of them. The other positions I’ve seen mentioned here and plan to consider are:

- Hard-code a release schedule, and direct some fixed portion to Confusion Capital, leaving the rest to DAO control.
- Create a foundation.
- Make RSR available for use until some milestone is reached, and then burn the rest at that point if there is any left.
- Release RSR based on reaching milestones rather than robotically over time.
- Do an airdrop.
- Use RSR only for building costs. Do not offer any growth or liquidity incentives.
- Combine approaches – do some combo of the approaches above, since there’s no hard requirement to do everything just one way.
- Go slowly in deciding how this all should work, consulting our advisor network and other crypto projects, to make sure we get to the best answer.
- Charge fees on RSR traded on exchanges, and use that income to fund things. (Two people suggested this; is that even possible? If two people suggested it maybe this is something that memecoins have negotiated with exchanges these days or something?)

Some other ideas that have emerged elsewhere are:

- Require both CC and RSR vote to make withdrawals from some pool of RSR.
- Create an RToken that contains both RSR and stables and can be rebalanced throughout the market cycle, using that for the RSR DAO to manage a treasury, so that it can increase or decrease its RSR vs cash position as appropriate.

I’m looking forward to thinking through all of the above, and if you have any other idea you want to add to that list to consider, feel free to post below!

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