RSR Proposes 30 Billion Token Burn for Governance Shift

The Reserve Rights community is discussing a proposal to burn approximately 30 billion RSR tokens. The proposed burn aims to improve the protocol’s financial health and governance structure significantly.

The plan includes introducing a new veRSR governance model, which ties voting power to locked tokens. The proposal, part of the “RSR Health” initiative, awaits an on‑chain community vote.

Community Welcomes Burn to Combat Inflated FDV

Community feedback has been largely supportive, emphasizing the burn’s potential to mitigate inflated FDV and rejuvenate investor interest. Discussions highlight the impact of reduced supply on token health.

Experts note potential reduction in liquidity and treasury flexibility following the burn. This move aligns with decentralizing governance through lock‑based voting, echoing existing DeFi frameworks. A Reserve Governance Forum Participant stated,

Burning 30B tokens is a smart move. It kills the inflated FDV issue and makes RSR look healthier to new investors.

Learning from Curve’s veCRV Governance Success

Similar events in the crypto space include Curve’s veCRV model, demonstrating success in concentrating governance power. Past fee-based burns have facilitated long-term value capture for tokens.

Kanalcoin experts suggest the move could solidify RSR’s market position. Still, the success depends on the Reserve ecosystem’s growth and adoption, reflecting trends seen in other DeFi governance shifts. More insights on these strategies can be found in the Future of RSR in 2025: Token Burning Plans.