The Reserve system sells both stablecoins and shares for collateral assets (tokenized bonds, properties, commodities). The collateral assets can be redeemed at any time in exchange for either stablecoins or shares. The trick here is that stablecoins represent fixed claims in fiat terms and appreciation of the collateral assets will ultimately be paid to shareholders as dividends. The system will initially be overcollateralized by the contributions of shareholders, but the collateralization ratio will trend towards 1:1 over time as the supply of stablecoins grows. If during that time the value of the collateral appreciates, the stablecoins will be worth less of the collateral assets than they paid in, with the difference being paid to shareholders.
this paragraph is confusing… maybe break it up in half and put your example in the middle of explaining the two different concepts you want to illustrate.
After the example reiterate the first part of your concept and explain the second part of your concept as a logical conclusion.