4.1 Introduction

For the purpose of clarity, we will from now on refer to the network’s stable credit as RSD and focus on its specific token economics. Please be reminded that RSD is the stable credit arising from the ReSource Network. Other mutual credit systems built on top of the ReSource Protocol may design different stable credits with a variety of soft and/or hard pegging mechanisms.

While all transactions between members are settled in RSD, transaction fees are settled in SOURCE, the Protocol’s governance and utility token. These SOURCE payments serve as the basis for SOURCE reward paid out to Ambassador, Underwriter and RSD savers (see chapter 4.3).

As we’ll see below, RSD deployed into savings plans, in conjunction with SOURCE stakes provided by Underwriters and Ambassadors, serve as the basis for the network’s currency stabilization mechanism and its insurance against defaults.