# CRR

**CRR**, or **Constant Reserve Ratio** is the coefficient of constant reservation of custom coins in the DecimalChain network.

## The role of CRR in creating your own coin

The idea behind Decimal is to provide absolute and instant liquidity for any network coin. To achieve this, each custom coin is reserved with the network's base coin, **DEL**. The reserve is created upon issuance and can increase or decrease based on the buying and selling of the issued coin.

The CRR (constant reserve ratio) determines the level of liquidity, indicating how much each coin is backed by the reserve in the total supply. The higher the CRR, the higher the reserve backing and the lower the volatility.

## Liquidity

Liquidity in the Decimal network is built on reserves. You can set the CRR from 10 to 100%, which primarily affects the coin's volatility. The higher the reserve percentage, the more stable the coin's growth and decline.

For example, setting the CRR to 100% means your coin will not change in price relative to DEL, and its volatility will completely mirror the DEL's chart.

With a 10% CRR, the price of your token relative to DEL will significantly increase after each purchase and decrease after each sale. When people buy your coin, they will increase the reserve, and when they sell, they will decrease it.

All issued coins can be instantly exchanged for the base coin, DEL, and all coins can be exchanged through DEL for other coins in the Decimal network.

DecimalChain is compatible with the Cosmos network, which means users will be able to "one-click" exchange their issued coins for Bitcoin, Ethereum, and other leading currencies. Coins issued in the Decimal system will not require listing on exchanges or even decentralized exchanges. Through DEL, they can be instantly quoted against the cryptocurrency market.

## Native coin DEL

A distinctive feature of the Decimal blockchain is the specifics of the economic model of coins. All the advantages follow from it:

- Simple coin issue;
- The ability to exchange them for any other within;
- The networks, paying fees with any coins of Decimal ecosystem.

The Decimal native coin **DEL**, in addition to the traditional ones, performs the function of backing. Each custom coin is backed up by a guarantee in the form of a certain amount in DEL. The size of this guarantee in relation to the total issue of a custom coin directly affects the value curve of this coin.

## CRR parameter when creating a coin

The CRR parameter is set when coins are created, and then the value curve remains unchanged forever.

When market conditions and the supply/demand correlation change, the value of the coin moves along the calculated curve, either up or down.

## Formulas for determining the value of coins

**The key parameters on the Decimal network are:**

- Reserve
- CRR
- The total number of coins issued.

All of them are involved in calculating the cost of buying or selling. The very existence of the two formulas is a consequence of nonlinear nature of the changes in coins` value.

### Calculation of the coin purchasing cost

where:

**Reserve**means current reserve in DEL;**Want to buy**means the number of coins to buy;**Issue**means the total number of coins;**CRR**means Constant Reserve Ratio (for example, 20 for 20%).

### Calculation coin sale value

Sale Amount = Reserve * (1 — (1 — Want to sell/Issue) ^ (100/ CRR))

where:

**Reserve**means current reserve in DEL;**Want to sell**means the number of coins for sale;**Issue**means the total number of coins;**CRR**means Constant Reserve Ratio (for example, 20 for 20%).

### Calculation of the current price of 1 coin

Price = Reserve * (1-(1-1/Issue)^ (100 / CRR))

where:

**Reserve**means current reserve in DEL;**Issue**means the total number of coins;**CRR**is a Constant Reserve Ratio (for example, 20 for 20%).

## See also

**This article is available in other languages:**Русский