Perpetual Coin Offering
What is a CRR?
CRR (Constant Reserve Ratio) is a measurement of creator’s confidence in their project. It reflects the volume of BIP reserves backing a newly issued coin. The higher the coefficient, the greater the reserves and thus the lower the volatility. And vice versa. The reserve itself consists of BIP that had been raised and then put into a smart contract; it can either increase or decrease, in cases of emission and burning, respectively. In terms of initialization, the size of reserves reflects the minimum sum of money, which is necessary to issue a new coin, transferred to a smart contract. The number can be set by the creator themselves, thereby determining the price of one unit after the initialization is completed.