Tokenomics
RUNE Tokenomics
THORChain’s native coin, RUNE, serves many vital roles in the network.
Settlement Asset
RUNE serves as the settlement currency between all supported assets, ensuring that any two
assets can be swapped directly. For example, a BTC -> ETH transaction goes from BTC to RUNE
to ETH without the swapper needing to use RUNE.
Economic Security
THORChain is secured by Proof-of-Stake. Node operators must bond RUNE to enter into the
network. Their total value bonded is greater than the assets they secure, ensuring
cooperation and maintaining economic security for assets held by the network.
Aligned Incentives
A balance between the amount of bonded RUNE and pooled RUNE is key to a secure and liquid
network. If the network is under-bonded, node operators are incentivized to increase their
bonds, if it’s over-bonded, liquidity providers are incentivized to pool more assets.
Value and Utility
Increasing THORChain’s swap volume grows fees for liquidity providers, which leads to deeper
pools and better prices, resulting in higher volume. This cycle drives value to RUNE.
METRICS
RUNE Metrics
RUNE’s price has two factors: a deterministic value based on the liquidity within the network, and a speculative premium.
Its 2:1 bond:pool ratio, combined with the 1:1 RUNE-Asset pairs in the liquidity pools means that the value of RUNE needed in the network is three times the value of the non-RUNE assets locked.
If $1,000,000 worth of non-RUNE tokens are deposited in THORChain, the market cap of RUNE will be at least $3,000,000. This is just the minimum, or deterministic value, of RUNE.
Calculator
RUNE Price Calculator
RUNE accrues value as more native assets are secured by the Liquidity Pools. Use this tool to calculate the deterministic price of RUNE based on the total value locked on THORChain.
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