What is THORCHAIN?
THORChain is a decentralized network that allows users to exchange digital assets under the motto "Permissionless".
These digital assets include Bitcoin, Ether and Binance Coins on the blockchain different. These assets will be swapped in a “permissionless” manner, meaning no “permission” from a company or organization is required.
How THORChain works
What problem does THORChain solve?
The basic problem that the project team aims at is the liquidity and the possibility of large price fluctuations of the market.
Price Movements of Cryptocurrencies (Buy Sell USDT) is attractive to investors, but on the other hand it is also a factor that prevents the community from using it.
The lack of liquidity of the cryptocurrency market is also the main reason why it is so volatile. While this may seem appealing to some investors, it is ultimately more of a gamble than an investment strategy.
Since then, due to weak liquidity and high volatility, it is difficult for assets like Bitcoin become a globally traded currency.
How to solve the problem of THORChain
THORChain Not only does the project provide a single protocol, but the project also provides an entire complete ecosystem, which aims to solve all the aforementioned problems with the current digital asset market.
Components of an ecosystem Thorchain includes the following components:
- Thorchain: decentralized liquidity protocol built on layer 1.
- YGGDRASIL protocol: is a fast and secure cross-chain bridge for Thorchain.
- Flash network: is a layer 2 network that allows the exchange of electronic assets between cross networks, it includes Liquidity Hubs.
- Bifrost Protocol: cross-chain protocol for Thorchain.
- Asgardex: A set of fast and secure liquidity interfaces for Thorchain.
- ÆSIR Protocol: Management protocol suite for Thorchain.
By using the chain-agnostic bridging protocol throughout the ecosystem, THORChain can support any existing digital assets.
The chain-agnostic protocol allows to solve liquidity problems without relying on any other third party like centralized exchanges.
Other than Uniswap or Bancor, they only support a certain type of chain, THORChain solves the liquidity problem of the whole market by supporting swap of any existing currency.
What is THORChain token (RUNE)? What is RUNE used for?
RUNE is Utility token BRP-2 (utility token) in THORChain platform used for the following purposes:
- Staking: Users will use tokens RUNE to stake and become part of the Validator Set.
- Transaction Fee: The RUNE token is used to pay transaction fees in the THORChain network.
- Token RUNE is also used to pay liquidity fees, bridging fees, etc. when using THORChain's services.
- In addition, RUNE is also used as a reward for Validators, encouraging users to be active and stake more.
After THORChain implements Mainnet and fully completes all features on the platform, RUNE will have the following uses in THORChain's ecosystem:
- Token RUNE supports all CLP Pools to provide liquidity.
- Validators (Validators) must use RUNE to stake and become a Validator as well as a part of the SET. These validators or block producers (Block Producers) will be responsible for validating transactions and creating blocks within the network. Blockchain by THORChain.
- RUNE tokens are used to pay transaction fees.
- Token RUNE is used to pay transaction fees, bridge fees, liquidity fees when using the service.
- The RUNE token is used to pay the participation fee and Liquidity Hubs.
- RUNE tokens are used to pay liquidity fees to RUNE Holders in liquidity pools in Layer 1 and liquidity hubs at Layer 2.
- RUNE Token is used to reward validators (Validators). The amount of block rewards paid out depends on the amount of RUNE tokens each of these Validators used to initially stake. This helps incentivize Validators to stay active and use tokens to stake more.
The THORChain team also emphasized that the RUNE Token was not created to be used as a payment token.
RUNE is considered a bridge to create liquidity for Pools in the ecosystem. RUNE token acts as an asset base so that the assets of 2 different pools (2 different types) are instantly interchangeable.
Some basic information about the RUNE . token
- Token name: RUNE Token
- Ticker: RUNE
- Blockchain: Binance Chain
- Standard Tokens: BEP2
- Contract Address: bnb1e4q8whcufp6d72w8nwmpuhxd96r4n0fstegyuy
- Total Token Supply: 500,000,000 RUNE
- Circulating token Supply: 219,740,999 RUNE
- Market cap: $268.355.533
Allocate RUNE . tokens
RUNE tokens are allocated as follows:
- Liquidity Emission: 50%
- Operational Reserve: 13%
- Marketing: 121TP1BILLION
- Founders, Advisors: 10%
- Private Sales: 61TP1BILLION
- Pre-sale: 71TP1BILLION
- IDO: 2%
Project development team
According to information on the system's website, most of the team members are anonymous for the purpose of "Protecting the project".
You can visit the project's Telegram or Twitter to find out more information.
THORChain's ecosystem includes:
- Validators: are the people who validate transactions in the THORChain Blockchain. They need to stake RUNE tokens to perform tasks, and receive token rewards.
- RUNE stake Holders: holders of RUNE tokens in liquidity pools and also receive rewards in RUNE tokens.
- End users: The end user, wishing to swap tokens, uses RUNE as a fee to swap.
THORChain is called a “Multi-year” project as described by the team.
How to earn, mine and own RUNE Token
Currently you can own RUNE tokens by buying on listed exchanges or becoming Validators or RUNE stakers and receive token rewards.
RUNE . token storage wallet
The future of THORChain, should invest in RUNE?
T-REX believes that if THORChain's solution works effectively and is adopted by many people, it will significantly contribute to stabilizing and balancing the market's price. That will make the market gradually accept digital currency as a payment method for mainstream transactions.
In the future, THORChain is aiming for the widespread deployment of a payment network, allowing cryptocurrency payments between customers and service providers.
Come here, T-REX hope to provide you with more information about the THORChain (RUNE) project and get a better overview of the project. All information in the article is information about THORChain (RUNE) compiled by Trex and does not constitute investment advice. We are not responsible for any direct or indirect risks. Good luck!