# Reserve Token

### Overview

The Kolektivo Reserve Token is an ERC-20 produced by a local instance of a [Kolektivo Reserve](https://kolektivo.gitbook.io/kolektivo-docs/tools/live-tools/reserve). The Reserve Token is backed by the assets held by the Reserve, such as [KTT](https://kolektivo.gitbook.io/kolektivo-docs/tools/framework-tokens/treasury-token), [Ecological Tokens](https://kolektivo.gitbook.io/kolektivo-docs/tools/framework-tokens/ecological-tokens) or cUSD, and used as collateral into the Mento system to mint the [community currency](https://kolektivo.gitbook.io/kolektivo-docs/tools/framework-tokens/community-currency) of the community economy. The Kolektivo Reserve Token introduces several utilities such as leverage, price ceiling and floor.&#x20;

### Utilities

* Reserve Delegates can mint more kCUR without any additional assets like KTT being deposited into the reserve. The maximum leverage ratio is a custom limit that determines how much leverage is possible.&#x20;
* The Reserve Token Minted by Reserve Delegates via governance proposals, constrained by leverage ratio.
* The Reserve Token's price is being held between a price floor and ceiling determined by the community.&#x20;
* The Reserve Token is used to back the community currency via Mento.

## The Kolektivo Curaçao Reserve Token

<figure><img src="https://807599655-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIhKhzl8NzsNE6Q8tO6lW%2Fuploads%2F7kQD591XJumaf5IF7guA%2Fcard-cover-token-kcur.jpeg?alt=media&#x26;token=f14ae2f5-cb0e-4187-ae4a-6a95b6492de6" alt=""><figcaption></figcaption></figure>

* **Name**: Kolektivo Curaçao Reserve Token
* **Ticker**: kCUR
* **Standard**: ERC-20 on Celo
* **Total supply**: Elastic supply
* **Token address**

### Overview

kCUR is the Reserve token of Kolektivo Curaçao. It is used as collateral in the Mento system to mint the community currency: the Kolektivo Guilder. It is backed by the Curaçao Reserve's assets. kCUR's parameters, such as price ceiling and floor, are customizable through community governance.&#x20;

### Utilities

* kCUR is minted by Reserve Delegates via governance proposals.
* kCUR's price is constrained by a price floor and a price ceiling defined by Reserve Delegates.&#x20;
* kCUR is used to back the community currency Kolektivo Guilder (kG) via Mento.
