# 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:** 41

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### Author: ![Crypto\_Goku](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.reserve.org/crypto_goku/32/150_2.png) [@Crypto\_Goku](https://forum.reserve.org/u/Crypto_Goku)
#### Post date: [June 28, 2024, 7:18pm UTC](https://forum.reserve.org/t/discussion-rsr-emissions-approach-for-the-second-half-of-the-token-supply/756/41 "2024-06-28T19:18:20Z")

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I would like to contribute a potential way to effectively use the RSR from the Slower Wallet. One possibility is to **directly incentivize the staking rewards on eUSD** , for example, with 10-20% APY (or even higher?). In the long term, 1-2 billion RSR could be allocated for this purpose. This would lead to a significant increase in staking, resulting in eUSD being overcollateralized by 200-300% or even more.

**Why do this?**

By doing so, **we could take 100% of the interest generated by the eUSD collateral and use it for incentive programs such as inside the Ugly Cash App or the Sentz App.** A tiered system could be introduced where higher eUSD holdings in these FinTech apps would lead to a larger share of the generated yields.

**This incentive program could be financed over a period of 6 to 12 months using RSR from the Slower Wallet for the staking pay outs of eUSD.** This period could be used to establish an effective incentive program for **Ugly Cash’s expansion in South America** , with Ugly Cash receiving up to 100% of the generated interest if Sentz or other FinTech Apps cannot compete with minting and holding enuff eUSD.

**Advantages:**

1. **Incentives for New Customers** :

- FinTech companies could offer $50 or more to each new customer or for customer referrals → more eUSD holders and savers → increase of MC of eUSD.

- With a market cap of $23 million and an APY of ~8%, approximately $1.8 million yield could be used for customer acquisition, advertising, and expansion.

1. **No Direct Inflation of RSR** :

- Using RSR from the Slower Wallet avoids direct inflation through market sales.

- The eUSD-RSR staking community is unlikely to sell all their staking rewards, reducing selling pressure.

1. **Increased Overcollateralization** :

- A very high overcollateralization of eUSD could attract more minters and strengthen trust in the token’s stability.

**Disadvantages:**

1. **Reduced Buying Pressure for RSR** :

- The buying pressure for RSR might decrease due to the lack of auctions for eUSD yields.

**→ However, this could be offset by the long-term growth of eUSD’s market capitalization.**

@gabo @mattimost @nevin.freeman @Smeddy @Tom_hyUSD

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