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What can RUNE coins be used for?

RUNE coins are the backbone of the THORChain ecosystem, powering liquidity provision, cross-chain swaps, governance, node rewards, access to THORSwap, and staking for enhanced security and returns.

Nov 13, 2024 at 08:59 am

What Can RUNE Coins Be Used For?

RUNE is the native cryptocurrency of the THORChain network, a decentralized liquidity protocol that enables the seamless exchange of crypto assets across different blockchains. RUNE coins play a crucial role in powering the THORChain ecosystem and facilitating various functionalities.

Providing Liquidity:

RUNE coins are the primary liquidity providers in the THORChain network.
Users stake RUNE to pools that support different pairs of crypto assets.
By providing liquidity, they earn transaction fees and rewards in proportion to their staked assets.

Facilitating Cross-Chain Swaps:

RUNE coins are used to facilitate the cross-chain exchange of crypto assets within the THORChain network.
Users can swap crypto assets directly from their wallets without the need for intermediaries.
RUNE coins act as the bridge between different blockchains, enabling the transfer of value across heterogeneous networks.

Governance:

RUNE coins holders participate in the governance of the THORChain network through the THORChain Council.
They vote on proposals related to network upgrades, protocol changes, and allocation of funds.
Governance rights are proportional to the number of RUNE coins staked.

Network Security:

RUNE coins are used to reward node operators who maintain the integrity and security of the THORChain network.
Nodes are responsible for validating transactions, securing assets, and facilitating cross-chain swaps.
RUNE coin holders can delegate their stake to reliable nodes, earning rewards in return.

Access to THORSwap:

RUNE coins provide access to THORSwap, the decentralized exchange built on the THORChain protocol.
Users can connect their wallets to THORSwap and exchange crypto assets directly, without relying on centralized platforms.
By holding RUNE coins, users can benefit from discounted transaction fees and other exclusive features on THORSwap.

Stakes:

Staking RUNE coins strengthens the THORChain network, ensuring its security and reliability.
Staking earns rewards for users who lock their funds in the protocol for a specified period.
By participating in staking, RUNE holders contribute to the stability and decentralization of the network.

Fees:

RUNE coins are used to pay transaction fees for cross-chain swaps and other services on the THORChain network.
Fees are distributed as rewards to node operators and liquidity providers, incentivizing network participation.
Transaction fees are dynamic, adjusting based on network utilization and market conditions.

Value Appreciation:

As the THORChain network gains adoption and its ecosystem expands, the value of RUNE coins has the potential to appreciate.
RUNE coin holders benefit from the increase in network usage, demand for cross-chain swaps, and the overall growth of the THORChain ecosystem.

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