THORChain ETH.RUNE

RUNE

RUNE is the asset that powers the THORChain ecosystem and provides the economic incentives necessary to secure the network.

Risk Rating
Best
$6.84
0.47%
Summary
What we like
RUNE has a deterministic value based on total liquidity in the THORChain network and a multiple or premium on top of that baseline value.
What we like less
RUNE is the base pair for all liquidity pools on THORChain and subsidizes impermanent loss protection through its protocol reserve, which can lead to negative feedback loops if losses are significant.
What it means for you
Holding RUNE is a great way to get upside exposure to the THORChain ecosystem. Staking RUNE in liquidity pools entitles you to earn trading fees and protocol rewards.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $2.3B
  • Fully Diluted Valluation: $2.8B
  • FDV / MC: 1.2
  • Ranking inside Exponential (excluding stables): #15
  • Circulating Supply: 334,522,948
  • Total Supply: 412,863,558
  • Total Supply: 500,000,000
  • Volume (24H): $186.3M
  • ATH: $20.87 (05/19/2021)
  • ATL: $0.01 (09/28/2019)
Risk Assessment
Best
Asset Strength

RUNE is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Thorswap (Thorchain), a protocol rated as Watch out.

Asset Tokenomics

RUNE has a fixed supply. RUNE is the asset that powers the THORChain ecosystem and provides the economic incentives necessary to secure the network.

Asset Volatility

RUNE is moderately correlated to the overall market.

Dependencies

THORSwap

Things to know about RUNE

What is RUNE used for?

RUNE serves a vital economic role within the THORChain ecosystem as it provides the incentives required to secure the network and coordinate liquidity. There are four key roles including use as liquidity (as a settlement asset), security (as a sybil-resistant mechanism), governance, and incentives.

RUNE tokenomics

The total supply of RUNE is capped at 500M tokens. The distribution is as follows: 220.5M allocated to the protocol reserve for paying validators and liquidity providers (LPs), 65M to operational reserve, 60M to the community, 50M to the team and advisors, 30M to seed investors, 70M to private sales, and 20M for an initial DEX offering (IDO). THORChain issues 2M RUNE tokens per month as part of its staking rewards program. This emission will continue until the community reserve is fully depleted. Node operators and LPs also receive monthly distributions equal to the block rewards calculation. Two-thirds of block rewards go to node operators (validators) and the remaining one-third goes towards LP incentives.

How does RUNE accrue value?

RUNE has intrinsic value due to THORChain's unique security model where node operators must bond two times the value of non-RUNE assets in liquidity pools. Moreover, each liquidity pool on THORChain must use RUNE as the base pair or 50% of the pool's value. This means that $3 of RUNE must be locked for every $1 of non-RUNE value added to the network. As native assets are added to THORChain's pools, RUNE's baseline value will increase. On top of this baseline value, the market also adds a premium based on the potential future value of assets added to the network.