THORChain Effects “Killswitch” On BNB, Ethereum RUNE Issuance
- Henceforth, BEP-2 and ERC-20 $RUNE exchange rates will linearly tick down to 1:0 over the next 12 months, according to THORChain.
ThorChain, a decentralized liquidity network that allows cross-chain token swaps in a non-custodial manner, has announced the activation of the BEP-2 and ERC-20 $RUNE kill switch. Reportedly, the killswitch happens at block 6500000.
A Monday tweet by the protocol’s developers confirmed the move, stressing that development means no upgrading can be done via 1:1. Henceforth, BEP-2 and ERC-20 $RUNE exchange rates will linearly tick down to 1:0 over the next 12 months, according to THORChain.
THORChain and its Latest Morphing
Additionally, this development further illustrates that 1 BNB RUNE issued at least six months after the killswitch activation tends to have a 0.5 THOR RUNE redemption rate. Similarly, anyone after a year of the killswitch tends to also have 0.0 THOR.RUNE.
Before the move for the kickswitch, the issuance of RUNE on both Ethereum or BNB chains is done as IOU. By interpretation, it grossly indicates that the tokens enjoy a similar redemption value to the assets premised on THORChain.
Findings, however, indicated that its holders obtained the tokens about eighteen months before the unveiling of a multichain testing platform. As revealed, the migration of the assets to the native network of the protocol makes it less vulnerable to exploitation.
As designed, every subscriber stands eligible to obtain sufficient RUNE in running the THORNode. This THORNode, as revealed, functions by processing transactions. It also helps in validating networks on the protocol.
Now, the developers of the protocol acknowledged that many exchanges had in the past performed the listing of the BNB RUNE. It claims those are still yet to migrate to THORChain-based issuance of RUNE. This development, according to the protocol, has prone RUNE to two different markets.
However, with THORChain, subscribers are allowed to swap BTC for any compatible crypto. This, as revealed, is possible without the usage of wrapped assets or bridges. Recall that bridges function as a network that depends on smart contracts to swap crypto from numerous blockchains.
Now, the decentralized platform paves the way for exchange between about 7 large ecosystems. They include Binance coin, Dogecoin, Litecoin, Bitcoin, Ether, Bitcoin Cash, and RUNE.
According to our market data, RUNE token is trading around $2.77 up 8.5 percent in the past 24 hours. Additionally, the asset has a market cap of $855 million with its 24 hour volume at approximately $290 million.
Worth noting, the asset is up approximately 80% and 40% in the past 30 and 7 days respectively. However, the token is down approximately 32 percent on the past year and another 86% from its all-time high.