This document provides essential information regarding the PRN token and its role within the Peoples Reserve financial ecosystem.
Table of Contents
- What is the PRN token?
- Why should I save or hold PRN?
- How do the Loyalty Levels work?
- Do fluctuations in PRN price affect my loyalty tier?
- How can I maintain my tier if the price drops?
- Where can I acquire PRN tokens?
- Is PRN a replacement for Bitcoin?
What is the PRN token?
PRN is the native loyalty token of the People's Reserve ecosystem. Holding PRN unlocks tiered benefits including reduced borrowing rates, lower swap fees, fee rewards, and exclusive access to new products. It acts as a specialized utility layer designed to work alongside Bitcoin as pristine collateral, strengthening your position across all products, including Mortgages, Vaults, and Lines of Credit.
Why should I save or hold PRN?
Holding PRN strengthens your financial position across all Peoples Reserve products (Mortgages, Vaults, and Lines of Credits). Key benefits include:
- Lower Borrowing Costs: Reduced APRs on Bitcoin-powered mortgages and Lines of Credit.
- Higher Savings Yields: Increased APY in vaults and Real World Asset (RWA) products.
- Discounted Fees: Savings on entry, exit, and swap.
- Loyalty Rewards: Access to participation fee rewards and exclusive loyalty bonuses.
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Early Access: Priority access to new financial tools and products.
How do the Loyalty Levels work?
Your benefits are determined by your Loyalty Level (Basic → Silver → Gold → Diamond). Your level is dynamic and is calculated based on your PRN ratio—the current value of your PRN holdings relative to your total portfolio and mortgage balances. As your ratio grows, you move up tiers to unlock better rewards.
Do fluctuations in PRN price affect my loyalty tier?
Yes. Because tiers are based on the current market value of PRN relative to your portfolio, a drop in PRN price could cause you to fall below a tier threshold. If this happens, your benefits (such as interest rates and fee discounts) will adjust automatically to match your new, lower tier.
T"Tier eligibility is determined by the average Loyalty Level maintained between payment cycles. For BMR it is the average during the entire life of the mortgage.
How can I maintain my tier if the price drops?
If you fall below a tier threshold, you have two primary options to restore your benefits:
- Buy more PRN: Purchase additional tokens to restore your ratio.
- The Rental Vault: Use this proprietary feature to "rent" the utility of PRN tokens. This allows you to maintain your loyalty benefits and interest rate discounts during market volatility without deploying additional capital to buy tokens outright.
Where can I acquire PRN tokens?
PRN tokens can be acquired directly through the Peoples Reserve SWAP service or via the Uniswap liquidity pool.
Is PRN a replacement for Bitcoin?
No. PRN is designed to complement Bitcoin, not replace it. Bitcoin remains the foundation of your financial strategy, while PRN acts as the utility layer that optimizes how you interact with your Bitcoin-backed assets. To facilitate this, we have prBTC, which is a wrapped version of Bitcoin used within our ecosystem
What is prBTC and why is it used?
prBTC is a wrapped version of Bitcoin used within the People's Reserve ecosystem. It allows your Bitcoin value to be used as "pristine collateral" for products like Bitcoin-powered mortgages. By using prBTC, the system can track your collateral in real-time, automate benefit rewards, and provide liquidity without requiring you to sell your actual Bitcoin.