THORChain

What is THORChain (RUNE)?

RUNE is a native token TORchain, which is a decentralized network that allows users to quickly exchange cryptocurrency between multiple chains without giving up full control of their assets. They can easily transfer tokens between different Level 1 blockchains without packaging or linking your assets.

The smooth exchange of tokens between different chains is ensured through the use of technologies such as:

• State machine which delegates outgoing transactions and manages the asset exchange logic;
• Unilateral government bindings which allow you to synchronize state from external chains;
• TSS protocol it provides distributed threshold key signing;
• Bifröst signature module which handles chain-specific transactions.

In addition to using the platform to exchange tokens, users can also become liquidity providers (LP) by providing liquidity to various pools. Liquidity providers are rewarded with RUNE tokens from Continuous Liquidity Pool (CLP). In addition, the THORChain crypto project works commission mechanism based on slipswhich ensures liquidity provided by LPs to avoid volatile losses.

If you are interested in the current price of THORChain, check out the RUNE price chart above.

THORChain Developers

The development of the THORChain crypto project is unique compared to other similar projects. The network has no official founders, directors, CEOs or other controlling persons. In fact, most of the people actively working on the project are anonymous. This is so because THORChain development is managed using Gitlab, where nodes decide which code base to use.

As THORChain’s tweet explains, developers work for nodes, releasing code that adds value to the system. By protecting assets and being active, nodes support liquidity providers. Liquidity providers then bring in the capital and place it on the market for swaps and arbitrageurs. Arbitrageurs and swaps stimulate the economy by paying commissions.

As such, the entire project is non-profit driven, meaning that the price value of all fees generated on the network is shared between node operators and liquidity providers.

The project was officially launched in 2018. At that time, the price of RUNE was around $0.01, and the asset showed very low volatility. However, the situation changed at the end of 2020, when the market began to see more activity.

The first significant market event occurred in the last days of December 2020. Then the price of THORChain exceeded $1 for the first time. In 2021, the asset reached a maximum of $17.

How does THORChain work?

Space SDK used to develop THORChain. It is an open source platform used to develop public multi-asset Proof-of-Stake (PoS) blockchains. Additionally, THORChain uses Byzantine Fault Tolerance Tendermint (BFT) as a consensus mechanism to protect the network from Sibyl attacks.

Tendermint provides THORChain Novel BFT PoS consensus mechanism. How it works? Essentially, a large group of system validator nodes collaborate to propose and approve new blocks of transactions. If you want to run a validator node, you will need to have high-performance hardware and software, and stake at least 1,000,000 RUNE coins. However, if you are unable to do this, you can also delegate your THORChain tokens to validators, thereby giving them the right to share a portion of the reward they receive for each block.

Purpose of RUNE coins

The RUNE token supports the entire THORChain crypto project. Below are the main features of THORChain coins:

• Control. RUNE token holders can choose which asset or chain they want to prioritize. They vote to provide liquidity to the pools of assets they want to prioritize.
• Safety. Node operators must pool twice as many RUNEs as they contributed to the pool to ensure security. To ensure that node operators act in the best interests of the network, RUNE bonds are used as collateral.
• Settlement asset. To enable exchange between different liquidity pools, the RUNE token acts as a settlement asset. This means that the value of a certain reserve of assets held in the liquidity pool must be equal to the value of RUNE tokens.
• Incentives. Swap fees and block rewards are paid in RUNE coins.
• Payment of commissions. RUNE coins can be used to pay for gas.

If you are thinking about purchasing RUNE tokens, keep in mind that the price of THORChain is subject to fluctuations. This is because the asset is affected by the general fluctuations of the crypto market, often following trends set by major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

RUNE Tokenomics

The maximum supply of THORChain tokens is 500 million RUNE. The asset is deflationary, meaning that the price of RUNE will rise as the available supply decreases.

In July 2019, THORChain conducted an initial offering of DEX (IDO) on Binance exchange, during which 20 million RUNE tokens were sold. However, prior to this IDO, several other funding rounds were organized, resulting in the sale of 130 million RUNE tokens.