Manual:Defining CRR when creating a coin

From Decimal Wiki
Jump to navigation Jump to search
This is a page with the instruction manual to the Decimal Console.

Main article: CRR

The Constant Reserve Ratio (CRR) is used in the second step (Tokenomics) when creating a coin:

Defining CRR when creating a coin

When creating a coin in DecimalChain, defining the CRR (Constant Reserve Ratio) plays an important role. CRR determines the percentage of reserve that will be reserved in the base coin, DEL, for each issued custom coin.

Steps to define CRR when creating a coin:

1. Determine the desired liquidity level: Decide how stable you want to make your coin. You can choose a CRR ranging from 10% to 100%.

2. Consider volatility: Take into account that a higher reserve percentage (higher CRR) will reduce the volatility of the coin, while a lower reserve percentage (lower CRR) will result in higher volatility.

Hint: You can learn more about the calculation formulas in the White Paper (link) and you can see how the price of your token will change when buying or selling by using the Calculator section (link) and setting different initial parameters. This will help you forecast the economic model of your token and understand which parameters to set when creating your token, as coin liquidation is not possible on the DecimalChain blockchain.

3. Make a decision: Determine the percentage of reserve you want to allocate for your custom coin. This will be your CRR.

4. Deploy the coin: After defining the CRR, you can launch your coin on the DecimalChain network with the specified reserve level.

Pay attention!  Remember that CRR is an important parameter that determines the liquidity and volatility of your coin in the DecimalChain network.