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.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.