What is the circulation and circulation of RUNE coin

RUNE coin's circulation of 300,000,000 tokens (60% of total supply) is influenced by factors such as issuance, liquidity mining, staking, and market conditions.

Nov 17, 2024 at 04:18 pm

What is the Circulation and Circulation of RUNE Coin?

Introduction

THORChain is a decentralized liquidity protocol that enables the permissionless exchange of assets across different blockchains. The protocol's native token, RUNE, plays a crucial role in facilitating transactions, incentivizing liquidity providers, and securing the network. In this article, we will delve into the circulation and circulation of RUNE coin, shedding light on its issuance, distribution, and market dynamics.

1. Issuance of RUNE Coin

The total supply of RUNE coin is capped at 500,000,000 tokens. Of this total, approximately 63% was initially issued during the project's genesis launch in June 2019. The remaining 37% of RUNE tokens are allocated for various purposes, including:

• Liquidity mining incentives: 12.5%
• Ecosystem development: 10%
• Developer team: 6%
• Reserve: 8.5%

2. Distribution of RUNE Coin

RUNE tokens were initially distributed through a crowd sale held in June 2019. The crowd sale raised approximately $10 million, with tokens sold at a price of $0.02 each. The distribution of RUNE coins following the crowd sale was as follows:

• Seed investors: 30%
• Private sale investors: 20%
• Crowd sale participants: 50%

3. Circulation of RUNE Coin

The circulating supply of RUNE coin refers to the number of tokens that are actively traded in the market. As of March 2023, the circulating supply of RUNE is estimated to be around 300,000,000 tokens, representing approximately 60% of the total supply. The remaining tokens are either held by the project team, locked in staking contracts, or reserved for future distribution.

4. Factors Affecting Circulation

The circulation of RUNE coin is influenced by various factors, including:

• Token issuance: New RUNE tokens are issued periodically to reward liquidity providers and incentivize participation in the protocol.
• Liquidity mining: Users can earn RUNE rewards by providing liquidity to THORChain pools, which increases the circulation of the token.
• Staking: RUNE holders can stake their tokens to secure the network and earn additional rewards, reducing the circulating supply.
• Market conditions: The price of RUNE can fluctuate based on market demand and supply, which can impact the circulation of the token as traders adjust their positions.

5. Market Dynamics of RUNE Coin

RUNE coin is traded on various cryptocurrency exchanges, including Binance, Coinbase, and Kraken. The token's price has exhibited significant volatility since its launch, influenced by factors such as overall market conditions, protocol updates, and community sentiment.

• Historical Performance: RUNE coin has experienced significant price fluctuations since its inception, with all-time highs of over $20 in May 2021 and all-time lows of under $0.50 in July 2022.
• Market Capitalization: As of March 2023, RUNE coin has a market capitalization of approximately $1 billion, ranking it among the top 100 cryptocurrencies by market value.
• Trading Volume: RUNE coin typically has a daily trading volume of several million dollars, indicating a relatively liquid market.