Stake RUNE

1. What Is THORChain (RUNE)?

THORChain is a decentralized liquidity protocol that allows users to easily exchange cryptocurrency assets across a range of networks including Bitcoin and Ethereum without losing full custody of their assets in the process. With THORChain, users can simply swap one asset for another in a permissionless setting, without needing to rely on order books to source liquidity. Instead, market prices are maintained through the ratio of assets in a pool (see automated market maker). The native utility token of the THORChain platform is RUNE. This is used as the base currency in the THORChain ecosystem and is also used for platform governance and security as part of THORChain's Sybil resistance mechanisms — since THORChain nodes must commit a minimum of 300k RUNE to participate in its rotating consensus process. THORChain was funded through an initial DEX offering (IDO) which launched through the Binance DEX in July 2019. Its single-chain chaosnet launched in April 2021, the multi-chain upgrade was launched in April 2021 and Mainnet is now live as of Jun 2022.. Learn more here

2. Who Are the Founders of THORChain?

According to an official representative of THORChain, the platform has no CEO, no founder and no directors. Instead, the further development of the protocol is organized via Gitlab with nodes as the ultimate deciders of which codebase to run. Those currently working on the project are largely anonymous. Again, an official representative of THORChain states that this is to "protect the project and ensure that it can decentralize." A tweet by the project sheds some light on the theory behind maintaining a project with an anonymous team, as quoted below: “-> Developers work for the Nodes, by shipping code that makes the system more valuable. -> Nodes work for the, liquidity providers by securing assets and being online. -> Liquidity providers bring capital, placed on-market for the Swappers and arbitrageurs. -> Swappers and arbitrageurs pay fees, bringing economic activity.”

3. What Makes THORChain Unique?

THORChain enables native asset settlement, allowing users to swap Bitcoin, Ether, Stablecoins, and other coins across 9 distinct blockchains. THORChain does not wrap or peg assets, instead it allows value to be exchanged from one coin on one blockchain to another coin on another chain. THORChain uses a unique system to help mitigate the issue of “impermanent losses” — or the often temporary losses that a liquidity provider can experience when contributing to liquidity pools. It achieves this by using a slip-based fee to help ensure liquidity stays where it is needed. THORChain combines a range of novel technologies, including on-way state pegs, a state machine, the Bifröst Signer Module and a TSS protocol to seamlessly facilitate cross-chain token swaps permissionlessly. This is all kept behind the scenes, making the platform accessible to even inexperienced traders. The protocol isn't profit-oriented. All fees generated by the protocol go directly to the participants eg. node operators and liquidity providers, and there are no provisions for the team. Instead, the team is incentivized by simply holding RUNE — just like everyone else. THORChain enables Streaming Swaps which allow large swaps to be broken up into many smaller swaps over time, which significantly reduces swap fees for users. Other than swaps, THORChain offers single-sided liquidity provision through Savers. Users can provide Layer 1 assets such as BTC and earn single-sided yield without impermanent loss. THORChain also hosts a flagship Lending protocol where users can borrow against their native BTC or ETH and receive a USD-denominated debt in the asset of their choosing. The loans have no liquidations, no interest, and no expiration.

4. How Many THORChain (RUNE) Coins Are There in Circulation?

As of June 2022, there are 308.0 million RUNE in circulation out of a total supply of 500 million. As we touched on earlier, THORChain initially launched following an IDO on the Binance DEX. As part of the IDO, 20 million RUNE were sold. Prior to this, a total of 130 million RUNE were sold in earlier funding rounds. According to the official Binance DEX proposal, 10% of the total supply (50 million tokens) was allocated to the team, and locked until the launch of the mainnet — unlocking at 20% per month thereafter. Much of this allocation was on-sold to raise further funds for the protocol. The team own less than 1% of all RUNE. As of July 2023, all RUNE is 100% vested and unlocked. ERC-20 and BEP-2 RUNE have been deprecated after a 2.5 year period to upgrade to native RUNE.

5. How Is the THORChain Network Secured?

THORChain is built using the Cosmos SDK and is powered by the Tendermint consensus mechanism. This keeps the network safe from attacks through a novel BFT proof-of-stake (PoS) system that sees a large number of validators work together to propose and finalize blocks of transactions. Beyond this, THORChain’s smart contracts have been audited by several third-party security firms, including one by Certik — which found no vulnerabilities.

6. Where Can You Buy THORChain (RUNE)?

RUNE is a popular cryptocurrency that is available to purchase and trade on a large number of both centralized and decentralized exchange platforms. The most prominent of these are Binance (centralized) and THORChain interfaces found at THORSwap (decentralized). RUNE is most liquid on the THORChain AMM which can be accessed by any ecosystem interface. As of June 2022, the vast majority of RUNE trading pairs are crypto/crypto pairs. However, RUNE can be bought with Korean won (KRW) on ProBit Exchange and US dollars (USD) on Binance. For more on buying cryptocurrencies with fiat, see our popular guide.

7. Related Pages:

Check out Uniswap (UNI) — the governance token for the popular Uniswap AMM. Check out 1inch (1INCH) — the native token for the 1inch DEX aggregator. How Decentralized Are Decentralized Networks? Find out with CoinMarketCap Alexandria. Have you seen the CoinMarketCap blog yet?

8. What is Blockchain?

Blockchain is a decentralized and distributed ledger technology that securely records transactions across multiple computers in a verifiable and permanent way. It forms the underlying technology for cryptocurrencies like Bitcoin and enables transparency, security, and immutability.

9. What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized networks, typically based on blockchain technology, and facilitates secure and transparent peer-to-peer transactions.

10. What is Bitcoin?

Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralized peer-to-peer network and is used for secure, transparent, and censorship-resistant transactions.

11. What is the difference between Bitcoin and Altcoins?

Bitcoin is the original and most widely recognized cryptocurrency, while altcoins refer to any other cryptocurrencies besides Bitcoin. Examples of altcoins include Ethereum, Ripple (XRP), Litecoin (LTC), and many others.

12. What is Staking?

Staking involves participants locking up a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. It is commonly associated with proof-of-stake (PoS) and delegated proof-of-stake (DPoS) consensus mechanisms, where participants receive rewards for helping secure the network.

13. How Can I Stake Cryptocurrency?

To stake cryptocurrency, you typically need to choose a platform or network that supports staking. Transfer your tokens to a compatible wallet, follow the staking instructions provided by the platform, and lock up the desired amount of cryptocurrency. Once staked, you may start earning rewards.

14. What Are Staking Rewards and How Are They Calculated?

Staking rewards are incentives provided to participants who lock up their cryptocurrency to support the network. The amount of rewards varies and is influenced by factors such as the network's inflation rate, the total amount staked, and the specific rules of the staking protocol.

15. Can I Unstake My Cryptocurrency at Any Time?

The ability to unstake and withdraw your cryptocurrency depends on the specific staking protocol and network. Some platforms may have lock-up periods or unbonding periods during which your staked tokens are inaccessible. Always check the terms and conditions of the staking service.

16. What are the Risks of Staking?

Staking comes with risks, including the potential loss of staked funds if a participant behaves maliciously or fails to fulfill their responsibilities. Market volatility can also impact the value of staked tokens. It's crucial to thoroughly research the staking protocol and understand the associated risks.

17. Can I Lose Money by Staking?

While staking is designed to be a rewarding activity, there is a risk of losing money, especially if the value of the staked cryptocurrency decreases or if the staking protocol encounters security issues. It's important to consider both the potential rewards and risks before participating in staking.