The PRN Token is the primary utility asset of the Peoples Reserve ecosystem. Unlike speculative tokens, PRN is engineered as a functional tool that allows users to optimize their Sound Money strategies. By holding PRN, users unlock lower borrowing costs, enhanced yields, and enhanced capital efficiency across all Peoples Reserve products.
Utility Over Speculation
In a traditional banking environment, interest rates and terms are dictated by centralized institutions. In the Peoples Reserve ecosystem, users can engineer their own terms. The amount of PRN you hold determines your Loyalty Tier, which acts as a multiplier for your financial success.
Core Utility Functions:
- Interest Rate Reduction: PRN holders unlock significantly lower APRs on Self-Repaying Mortgages, Bitcoin Mortgages, and Lines of Credit.
- Upside Retention: For Bitcoin Mortgage holders, higher PRN tiers increase the percentage of Bitcoin appreciation the borrower keeps in their escrow.
- Fee Discounts: Loyalty tiers provide discounts on closing cost with Diamond loyalty tier saving up to 50% on closing costs, Gold saves 25% and Silver saves 10% on Mortgage closing costs.
- up to a 50% discount on closing costs and platform management fees.
- Priority Access: Diamond and Gold members receive priority on waitlists for new product launches and high-demand bond issuances.
The PRN Loyalty Tiers
Your Loyalty Tier is calculated based on the ratio of PRN held relative to your total portfolio balance. This system ensures that the most committed participants in the ecosystem receive the lower costs for our products and services.
| Loyalty Tier | PRN Requirement |
|---|---|
| Basic | Up to 1.99% |
| Silver | 2% – 5.99% |
| Gold | 6% – 9.99% |
| Diamond | 10% + |
Strategic Implementation: A Practical Example
To understand the power of PRN utility, consider a borrower seeking a $500,000 Bitcoin Mortgage (BMR):
- Without PRN (Basic): The borrower pays a 6% interest rate and keeps only 20% of the Bitcoin appreciation in their escrow.
- With PRN (Diamond): By holding 10%+ of the loan value in PRN, the interest rate drops to 3% and the borrower keeps 50% of the BMR split.
In this scenario, the PRN utility doesn't just lower monthly costs, it potentially accelerates the full payoff of the home by several years.
Transparency and Custody
Peoples Reserve maintains the same rigorous security standards for PRN as it does for Bitcoin. PRN utility is tracked on-chain, and the platform utilizes institutional-grade custody (BitGo) to ensure that loyalty status is verifiable and secure.
- Non-Custodial Integrity: Your loyalty status is linked to your verified holdings, ensuring transparency in how your rates are calculated.
- Real-Time Adjustments: As you increase your PRN holdings and upgrade your Loyalty Tier, new benefits are unlocked.