Crypto friends who see the symbol (3,3) know the power of Olympus DAO $OHM @OlympusDAO in 2021.
IDO price $4, peak at $1,415, a rise of over 300 times—and that's just the price increase, not counting the additional tokens from rebases. If you held, starting with $500 could truly have a chance to become $5 million.
Since then, any project waving the flag of being an OHM copycat could garner attention or support from a group of followers.
But those days are gone!
Back to the topic.
A very interesting new project recently appeared on-chain: The Standard Reserve. It doesn't call itself a stablecoin, nor a governance token, but directly proclaims itself as "The sovereign onchain central bank."
一、 What does it actually want to do?
Traditional central banks have three core functions:
— Issue currency
— Regulate money supply
— Accumulate reserve assets
The Standard Reserve implements these three things entirely with code, with no committee, no board, no human intervention. The whitepaper sums it up in one sentence:
“It answers to no board, committee, or government. Because it’s 4,000 lines of immutable code. The bank is code.”
The entire system is a closed monetary economy with only four core elements:
One currency: $STANDARD
One market: The ETH/$STANDARD pool on Uniswap v4 (with a custom hook)
One signal: The net ETH flow of this pool
One authority: The code itself
二、 Core Mechanism: Reflexive Monetary Policy
This is the most essential part of the entire project.
The system only looks at one signal
—— Net ETH Flow: Net inflow > 0 (someone continuously buys $STANDARD with ETH) → Expansion period increases the issuance rate of $STANDARD, then uses the fees mainly to purchase tokenized gold, held permanently as hard reserves
—— Net inflow ≤ 0 (someone continuously sells $STANDARD) → Contraction period immediately reduces issuance rate, uses the fees mainly to repurchase and burn $STANDARD
Moreover, the adjustment is asymmetric:
Rate cuts (contraction) take effect immediately
Rate hikes (expansion) must be gradually increased through sustained net inflow
Simply put: if a lot of capital flows in and the price rises consistently, the system issues more tokens + hoards gold; if capital flows out, the system issues fewer tokens + repurchases and burns. This is what it calls "reflexive monetary policy."
三、 Six Core Entities
1、$STANDARD
ERC-20, hard cap of 1 billion
—— The only currency, minted only upon withdrawal, continuously burned
2、The Pool
Uniswap v4 ETH/$STANDARD pool
—— The only market, all trading fees go to the bank, net flow is the policy signal
3、Central Bank
4000 lines of code
—— Reads net flow, decides issuance rate, allocates fees
4、Charter
Soulbound NFT (transfer may be opened later)
—— The banker's "business license," genesis only has 1000 free spots
5、Branch
"Storefronts" under a Charter
—— The units that actually earn issuance revenue, maximum of 10 per Charter
6、Vaults
Expansion Vault + Contraction Vault
—— Responsible for hoarding gold and repurchasing/burning respectively
补充: A Charter is a company, a Branch is its storefront. The company makes money through storefronts, expands by opening new storefronts (burns tokens), and pays dividends to the owner by closing storefronts. Closing the last storefront dissolves the company.
四、 How does one interact with the project?
1、 Acquire a Genesis Charter
1000 free Founding Charters (allowlist + public, 1 per wallet max) After that: Daily ETH Dutch auctions for new ones
2、 Open Branches to Earn
Each Charter comes with 1 Branch Can open up to 10 maximum Additional Branches require purchasing "Expansion Licenses" with $STANDARD (100% burned)
3、 Withdraw and Retire
Branch → Receive proportional accumulated $STANDARD But must pay a dynamic exit fee (higher fee with greater system exit pressure) Half of the exit fee is burned, half is distributed to remaining bankers Closing the last Branch burns the Charter
The design is interesting: to earn more, you must burn tokens to expand; to withdraw, you must permanently give up future profit share and possibly subsidize those who stay.
五、 Where does the money come from and go?
All protocol revenue (trading fees + Charter auction ETH) is pooled and then distributed:
70% → Current active vault Expansion period → Expansion Vault → Converted to tokenized gold, held permanently Contraction period → Contraction Vault → Rate-limited repurchase of $STANDARD and burn
15% → Protocol-owned liquidity (permanently added to the pool)
15% → Team
Repurchases during contraction also have rate-limiting protection:
Formula: spendtick=min(0.10×V, 0.002×R) V is the Contraction Vault reserve, R is the V4 pool reserve. Meaning each hour, at most min(10% of vault balance, 0.2% of pool reserve) can be spent, preventing manipulation or one-time sell-offs.
六、 Summary
1、 Mechanism
The entire mechanism is quite intricate. Total token supply is 1 billion, initial 100 million plus the pool. The first 1000 Charters require allowlist. Acquire a Charter, get one built-in Branch. Holding a Branch allows you to share in the newly issued tokens. Want more Branches? Burn $STANDARD tokens. If you withdraw (retire), you can receive the accumulated platform tokens but must pay an exit fee. The exit fee is dynamic; the more people exit, the higher the fee. Upon exit, the corresponding Branch is destroyed. We can think of Charter as the parent NFT and Branch as the child NFT. The parent NFT is purchased with ETH (first 1000 are free), child NFTs are acquired by burning $STANDARD.
More child NFTs, more money shared.
2、 Expansion Vault and Contraction Vault
This is a point easily confused. First, money is collected uniformly, primarily from subsequent Charter auctions and $STANDARD transaction taxes (rate currently unknown).
After collection, based on the current epoch's state, it flows to either the Expansion Vault or the Contraction Vault.
If net ETH inflow > 0 (which essentially means the token price is rising, assuming ETH price is constant), then 70% of the collected money goes to the Expansion Vault to buy tokenized gold, held as permanent reserves.
If net ETH inflow ≤ 0, then 70% goes to the Contraction Vault to buy $STANDARD according to the formula and burn it continuously.
3、 How to get an Allowlist spot for Charter?
Getting a Genesis Charter is undoubtedly the most profitable way to participate.
1000 pieces, free mint, with allowlist and public spots. Three types of roles have a chance to get on the allowlist:
The most active on-chain participants / Educators in this field / Content creators / High-quality community contributors
4、 Risks
The Standard Reserve attempts to use pure code to create an on-chain central bank that regulates its own money supply, hoards its own gold, and repurchases and burns its own tokens during declines. It also gamifies the "banker" role into NFT + branch earnings, aligning participants' self-interested actions directly with the system's deflation and reserve accumulation.
The mechanism, narrative, and gameplay have some innovation. However, the project is completely anonymous, many key parameters (epoch length, base issuance rate, multiplier range, transaction fee rate, etc.) are still blank, and code security is unknown. DYOR.
@standard_rsv
