What is CRR and how does it affect the creation of crypto?

💰CRR is a constant reservation ratio, a complex concept we are familiar with due to the “golden reserve” and the banking system.

When you deposit money to a bank, a certain percentage of that amount should be transferred to a special account with the Central Bank as a reserve.

Now bank uses your money to provide loans, and that part of your deposit in the reserve of central bank is used in case someone needs an urgent refund.

🔁Reservation ideas have been used before, when each US dollar could be exchanged for gold at a “solid” rate.

While designing your own cryptocurrency on the Decimal blockchain, you need to provide it with a reserve in DEL coins so that any owner of your cryptocurrency can exchange it for DEL at any time. The size of the reserve relative to the total number of your coins directly affects the value of this coin.

🪙 Creating your cryptocurrency you also need to specify the reserve percentage — this is the CRR, which can be from 10% to 100%. This percentage affects the exchange rate of your cryptocurrency to DEL. And how much will the cost of your token change when it will be sold or bought.

❗️For example, if the CRR set 100% then your coin will not change in price relative to DEL and its volatility will completely repeat the DEL chart.

❗️With a CRR 10% token, the price of your token relative to DEL will rise after each purchase and fall after each sale. Because by buying your coin people will replenish the reserve, and by selling — decrease.

The change in the price of your coin occurs according to an unchanged curve based on formulas, so before creating a coin, you can calculate any scenarios and confidently plan the development of the coin.

🧮For ease of calculations, we have created a calculator, try to “play” with it and you will understand how reservation ideas and mathematical formulas make your cryptocurrency liquid, reliable and predictable!

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Decimal helps communities to issue and manage blockchain assets.

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