# CRR

CRR – Constant coefficient ratio to the reserve.

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.

# Native DEL coin

The native DEL coin, 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** - current reserve in DEL;

**Want to buy** - the number of coins to buy;

**Issue** - the total number of coins;

**CRR** - 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** - current reserve in DEL;

**Want to sell** - the number of coins for sale;

**Issue** - the total number of coins;

**CRR** - 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** - current reserve in DEL;

**Issue** - the total number of coins;

**CRR** is a Constant Reserve Ratio (for example, 20 for 20%).