THORChain Initiates Killswitch, Transitioning Rune to Native Blockchain for Improved Security and Autonomy

THORChain has activated a "killswitch" that will gradually phase out the use of rune (RUNE) based on the Ethereum and BNB blockchains. The killswitch, active at block 6500000, will reduce the redemption rate of BNB Chain-based (BNB.RUNE) and Ethereum-based (ETH.RUNE) rune from 1:1 to 1:0 over the next 12 months, effectively deprecating the tokens in favor of rune issued on THORChain's native blockchain.

THORChain Triggers Killswitch to Transition Rune to Native Blockchain, Enhancing Security and Network Autonomy

THORChain, a decentralized cross-chain liquidity protocol, has initiated a "killswitch" mechanism to phase out Rune (RUNE) tokens issued on the Ethereum and Binance Smart Chain blockchains in favor of RUNE native to its own blockchain.

Rationale Behind the Killswitch

The decision to activate the killswitch stems from concerns over potential security vulnerabilities and operational inefficiencies associated with the non-native RUNE tokens. These tokens, known as BEP-2 and ERC-20 RUNE, have been in circulation as IOUs redeemable for an equivalent value of THORChain-native assets.

However, the presence of non-native RUNE tokens has created two separate markets for the asset, leading to market fragmentation and hindering the network's adoption. Moreover, these tokens have been susceptible to exploits, with a critical vulnerability discovered on the Binance Chain six months ago.

Gradual Phase-Out Process

The killswitch will initiate a gradual reduction in the redemption rate of BEP-2 and ERC-20 RUNE tokens. Over the next 12 months, the redemption rate will linearly decrease from 1:1 to 1:0. This means that after six months, 1 BEP-2 or ERC-20 RUNE token will only be redeemable for 0.5 native THORChain RUNE, and after one year, it will be completely worthless.

Impact on Exchanges and Users

The activation of the killswitch will affect exchanges that have listed BEP-2 and ERC-20 RUNE. These exchanges are expected to transition to native RUNE to maintain liquidity and avoid potential market disruptions.

Users holding BEP-2 or ERC-20 RUNE tokens are advised to ensure that their wallet addresses begin with "thor1..." to receive the upgraded native RUNE tokens. If not, they should move their tokens to a supported wallet or exchange.

Enhanced Security and Network Autonomy

The transition to native RUNE tokens will significantly enhance the security and autonomy of the THORChain network. By eliminating the reliance on external blockchains, THORChain becomes less susceptible to exploits and malicious actors.

This move aligns with THORChain's long-term vision of becoming a fully autonomous, self-governed cross-chain liquidity protocol.

Continued Expansion and Innovation

Despite the killswitch activation, THORChain continues to expand its capabilities and introduce new features. The protocol currently supports swaps between seven major tokens, including Bitcoin, Ethereum, and Binance Coin, with upcoming support for Cosmos and Avalanche.

The network remains committed to providing a secure, decentralized, and efficient platform for cross-chain liquidity, empowering users with seamless and trustless asset exchange capabilities.