Who issued the THORChain(RUNE) currency?

THORChain's native cryptocurrency, RUNE, serves as the transaction fee currency, stake requirement for liquidity providers, and governance token for network updates.

Dec 09, 2024 at 11:36 am

Who Issued the THORChain (RUNE) Currency?

THORChain, also known as RUNE, is a decentralized network that facilitates cross-chain liquidity. It enables users to seamlessly swap assets between different blockchains without relying on intermediaries. The native cryptocurrency of THORChain is RUNE, which plays a crucial role in the network's operations.

1. Concept and Genesis of THORChain

THORChain was conceived in 2018 by a team of experienced blockchain developers, including Chad Barraford, who previously worked on Shapeshift, and Rune Christensen, the founder of MakerDAO. The project began as a proof-of-stake blockchain specifically designed for cross-chain liquidity.

2. Introduction of the RUNE Token

As THORChain evolved, the need for a native cryptocurrency became apparent. RUNE was created in 2019 as the official currency of the THORChain network. It serves multiple purposes:

• Transaction Fees: RUNE is used to pay transaction fees on the THORChain network, ensuring the smooth and efficient execution of cross-chain swaps.
• Stake Currency: Users can stake their RUNE tokens to become liquidity providers on THORChain. In return, they earn rewards for contributing to the network's liquidity pools.
• Chain Governance: RUNE holders have the power to vote on important network proposals and updates, actively shaping the future of THORChain.

3. THORChain's Proof-of-Stake Consensus Mechanism

THORChain employs a proof-of-stake consensus mechanism to secure its network. Instead of relying on miners, block production and transaction validation are performed by nodes that stake their RUNE tokens. By participating in the staking process, users help maintain the integrity and security of the network.

4. Decentralized Liquidity Pools

One of the key features of THORChain is its network of decentralized liquidity pools. These pools are composed of RUNE and other supported cryptocurrencies. Users can contribute their assets to these pools and become liquidity providers (LPs), earning rewards for facilitating cross-chain swaps.

5. Cross-Chain Swaps Facilitated by RUNE

The RUNE token plays a pivotal role in the execution of cross-chain swaps on THORChain. When a user initiates a swap, they have the option to pay transaction fees in either RUNE or the asset being swapped. The network then converts the fees into RUNE and distributes them to the validators and liquidity providers responsible for processing the swap.

6. THORChain's Future Roadmap and Developments

THORChain has an ambitious roadmap for the future. Its developers are actively working on expanding the network's capabilities, including:

• Support for Additional Cryptocurrencies: THORChain plans to integrate more cryptocurrencies into its ecosystem, increasing the range of assets that can be swapped across blockchains.
• Enhanced Interoperability: The team is exploring cross-chain integrations with layer-2 solutions and sidechains to improve scalability and interoperability.
• DeFi Integration: THORChain aims to integrate with other DeFi protocols, enabling users to access a wider range of financial services on a cross-chain basis.