THORchain (RUNE) is a decentralized protocol specifically designed to make it easier for users to exchange crypto assets across blockchains. Currently, THORchain (RUNE) is ranked 36th at the global level according to Coinmarketcap.com with market capitalization reaching IDR 31.7 trillion and daily transaction volume reaching IDR 4.96 trillion on Tuesday (12/12). Find out more about what THORchain is, including information about its founder, its working mechanism, and an overview of its tokenomics, for a thorough understanding in this article.
What is THORchain (RUNE)
THORchain is a decentralized finance (DeFi) protocol that offers innovative solutions for cross-chain asset exchange. In contrast to other DeFi protocols, THORchain does not require the formation of asset pairs. Instead, each asset has its own liquidity pool , creating a decentralized liquidity network.
With a focus on liquidity sustainability, THORchain uses an incentive model to encourage liquidity providers to provide their assets into the pool. Thorchain's native token, RUNE, acts as a collateral asset and can be used to pay transaction fees and provide rewards to liquidity providers.
How THORChain Works
The asset exchange process on THORchain is carried out through cross-chain swaps, allowing users to exchange assets from one blockchain to another blockchain without third party intervention. In the THORchain network, nodes and validators play an important role in ensuring security and consensus. The platform also offers a user interface called BEPSwap, where users can exchange assets, provide liquidity, and get directly involved in the protocol.
THORchain has a continuous liquidity pool for each asset, creating the possibility of instant and decentralized exchange. With a design that supports interoperability with various blockchains, such as Binance Chain, Bitcoin, and Ethereum, THORchain is a solution to cross-chain liquidity constraints in the DeFi ecosystem.
Who is the Founder of THORChain
The founder of THORchain is anonymous. THORchain was created by the development team at the Binance Dexathon event in 2018. After the event was over, the development team continued researching THORchain technology. The protocol's multi-chain "chaosnet" launch occurred in April 2021 after initial development across several testnets.
Since the founders and developers remain largely anonymous, the THORchain community plays a large role in the company's public image.
Tokenomics
RUNE is a native token in the THORchain ecosystem. As of December 12, 2023, there will be more than 300 million RUNE in circulation out of a total supply of 500 million. As the native token on the THORchain network, RUNE has four important roles, including:
- Liquidity: RUNE is used as a token pair in each liquidity pool on THORchain. This allows users to exchange crypto assets from various blockchains without the need to involve third parties or wrapping services . RUNE acts as an intermediary in every exchange, creating cross-chain liquidity.
- Governance: RUNE token holders have voting rights in THORchain network governance decisions. They can participate in elections and voting regarding the development and direction of the network. This allows the community to have influence in decision-making related to protocol development.
- Security: RUNE holders can stake or bond their tokens to support the security and consensus of the THORchain network. Operator nodes that carry out verification functions and maintain the network are also required to bond a number of RUNE tokens as a guarantee of participation.
- Rewards: RUNE token holders who provide liquidity into the liquidity pool and operator nodes who help maintain the network can receive rewards. These rewards can take the form of sharing transaction fees and other incentives in return for their contributions.
By having the four uses above, the RUNE token is not only a means of payment in the THORchain network, but also plays a role in supporting security, governance and incentives for holders and network contributors.
Conclusion
THORchain(RUNE) is a decentralized finance (DeFi) protocol that presents an innovative approach to cross-chain asset exchange. Without the need to form asset pairs, THORchain allows each asset to have its own liquidity pool, creating a decentralized liquidity network. With a focus on liquidity and interoperability, THORchain is becoming the leading solution for cross-chain liquidity constraints in the DeFi ecosystem.
How to Buy RUNE Tokens on Bittime
After reading a complete review of what THORchain is, are you interested in buying and investing in this crypto project? You can buy RUNE tokens on the best crypto exchange platforms in Indonesia, one of which is Bittime. RUNE is available on Bittime in IDR RUNE pairing .
To be able to buy RUNE tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance to buy RUNE tokens. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase RUNE in the application. Click for a complete guide on how to buy RUNE on Bittime.
Monitor today's THORchain price chart movements, Bitcoin, Ethereum, Solana and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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