#TokenReserve Token Reserve refers to a designated pool of tokens withheld or allocated within a blockchain ecosystem to ensure stability, liquidity, or incentivization. These reserves are a critical component of tokenomics, often managed by protocols, decentralized autonomous organizations (DAOs), or projects to achieve specific goals.
In decentralized exchanges (DEXs), token reserves (liquidity pools) enable trading by ensuring sufficient asset availability, minimizing price slippage. Algorithmic stablecoins use reserves to maintain pegs—holding collateral (e.g., cryptocurrencies, fiat) to stabilize value during volatility. Projects may also reserve tokens for future development, partnerships, or community rewards