The current status and prospects of the Digital Reserve Currency
I received several messages from DRC holders who were concerned about the slowdown of DRC developments. Here are my thoughts on the current status and prospects of the Digital Reserve Currency (DRC).
First of all, I want to highlight what makes DRC special.
TOKENOMICS
DRC has fixed supply and deflationary economic model. The scarcity of DRC is embedded into the code and is essential for protecting against the token value depreciation in the future. All DRC token supply is currently in circulation and no new DRC tokens will ever be minted. The issuance of new tokens or any other changes in the token structure are restricted by the DRC smart contract.
GOVERNANCE
DRC is not managed or controlled by anyone. There are no large token holders who can manipulate the DRC market. No single wallet owns more than 1.7% of the total DRC supply. DRC token allocation is very well balanced and transparent. Disclosure: I currently own ~1.5% of the total DRC supply.
DRC is not a commercial project and does not collect fees from its platform users. It was created to help people to hedge inflation risks and preserve capital in the efficient and cost-effective manner. A project like this should not be managed by a centralized team; stakeholders have faith in DRC and its sustainability because it is decentralized, trustless, and censorship resistant.
COMPLIANCE
DRC did not conduct a token sale and never received any funds from investors. 100% of the total token supply has been issued directly to the secondary market. DRC network and governance structure are sufficiently decentralized. Therefore, DRC has potential to become one of the most compliant digital assets on the market, which is extremely important in the current regulatory environment.
DIGITAL RESERVE
Digital Reserve (DR) is a decentralized platform where DRC holders can securely store DRC in the “DRC Vault” and preserve capital with “Store of Value” Vaults. DRC token provides exclusive access to the DR Vaults and therefore has a unique utility/use case. DR smart contract has been audited, and DR Vaults can be accessible directly through Etherscan, if needed.
YTD performance of Vault s1 (40% Bitcoin, 40% Ethereum, 20% Gold) is 220%, and YTD performance of Vault s2 (90% US Dollar, 5% Bitcoin, 5% Gold) is 5.3%.
Regarding new DR Vaults. Any technical upgrades will need significant development resources and security audits. My vision is that DR Vaults provide access only to SoV (well established and less risky) assets, which resonates with the DRC philosophy. Keeping DR Vaults that contain SoV assets aligns with the DRC concept and mitigates compliance risks.
FUTURE OF DRC
Digital Reserve Currency has strong fundamentals and has captured a unique market niche in the SoV segment of the crypto economy. The combination of robust tokenomics and unique value proposition makes me believe that DRC is here to stay. However, to achieve global adoption, more people need to become knowledgeable about DRC and Digital Reserve Vaults.
The trajectory of a DRC from negligible awareness to a global adoption is unlikely to be linear. Many DRC token holders are focused exclusively on the price action. I hope that over time, the perception of DRC will focus more on the long-term value proposition and less on the short-term performance.
The power of DRC is that no one can overtake, control, or change it. DRC smart contract has been verified and cannot be altered. Decentralized Digital Reserve platform works completely autonomously. Uniswap genesis LP token has been burned to ensure there is always liquidity for traders. DRC and DRC Foundation websites will be deployed on IPFS, a decentralized file-sharing network. Because of these changes, DRC can become one of the most decentralized and censorship resistant projects in the crypto space.
