THORChain (RUNE) belongs to the Blockchain Protocol project type. This is the Permissionless cross-chain decentralized liquidity network. It allows to swap digital assets instantly.
THORChain builds a chain-agnostic bridging protocol. It allows for a reliable and secure connection and exchange of value between different blockchains.
In THORChain’s model, they have liquidity pools; crypto assets will be stake in this pool. Stakeholders will earn corresponding fees.
At the same time, the pools with these crypto assets will be used to provide instant swap features, borrowing, lending or other payment services.
What is RUNE token?
RUNE is the native token in the THORChain platform. However, currently, THORChain has not released the Mainnet. They are still planning to release the RUNE Token according to the BEP-2 standard on Binance Chain.
In the THORChain ecosystem, RUNE acts as a Utility Token. It is used for paying swap, staking in governance, rewarding validators.
THORChain will implement the Mainnet in 2020. At that time, it will swap RUNE from BEP-2 to the original token on the THORChain Blockchain.
What are RUNE tokens used for?
After the Mainnet and fully functional, RUNE will have the uses in the THORChain ecosystem:
- RUNE Token back behind all CLP Pools to create liquidity.
- Validators must use the RUNE Token to stake and become part of the Validator Set.
- These Validators or Block Producers will be tasked with validating transactions and creating blocks within THORChain’s Blockchain network.
- RUNE Token is used to pay transaction fees within THORChain’s Blockchain network.
- RUNT Token is used to pay trading fees, bridge fees, liquidity fees when using THORChain’s services.
- RUNE Token is used to pay participation fees and Liquidity Hubs.
- RUNE Token is used to pay liquidity fees for RUNE Token Holders in liquidity pools in Layer 1 and liquidity hubs in Layer 2.
- The RUNE Token is used to reward validators. The amount of RUNE Token Rewards block rewards paid depends on the amount of tokens that each of these Validators stake initially. This helps encourage validators to operate and stake more.
Team
The team is mostly anonymous to protect projects. The team of THORChain based in Australia.
Figure-heads, founders and personalities undermine a project’s ability to decentralize.
Transparency is expressed in other aspects (treasury, code, research).
In time, Node operators will fund satellite development teams.
Conclusion
User experience is a major challenge for all types of Blockchain projects. THORChain is doing a lot of testing and research to optimize the user experience, pleasing traders, stakers and swappers as much as possible. At the same time encourage them to use the project interface. In the long run, people will be able to create their own interface with the THORChain network.
The strength of THORChain is still a fully liquid, permissionless, decentralized Blockchain and not affected by market manipulation.
You can check RUNE price here.
Read more: