THORChain, a cross-chain exchange and bond tester, has finally activated the mechanism that will phase out support for BEP-2 and ERC-20 based variants of the RUNE token.
BNB.RUNE Y ETH.RUNE, also known as IOU Tokens, are being exchanged for the updated and fully native RUNE token after the long-awaited THORChain mainnet at the end of last month.
From now on, these tokens will progressively lose their value over the next 12 months, because the project aims to promote the adoption of its fully unified variant of RUNE, allowing greater interoperability of assets.
Users who hold their IOU tokens on centralized exchanges will see their tokens automatically upgraded to the new native RUNE. Those who keep their tokens in personal wallets must create a new THORChain-supported wallet and then click a refresh button to do the conversion.
The THORChain team stated via Twitter on July 18 that the switch will go live at block 6,500,000 and that 1:1 exchange rates will “go linearly down to 1:0 over the next 12 months” as tokens IOU lose value.
Today, the BEP-2 and ERC-20 $RUNE killswitch will be activated at block 650000 Upgrades will no longer be 1:1. Exchange rates will linearly tick down to 1:0 over the next 12 months.
If you hold $RUNE in a self-custody wallet, ensure your wallet address begins with `thor1…`
— THORChain (@THORChain) July 18, 2022
The team previously stated in a blog post earlier this year that this move was part of a push towards further decentralization of their network, as it highlighted the problems of having IOU RUNE spread across two separate networks:
“THORChain is extremely strict about having no third-party dependencies, preferring to manage everything in-house. There are no oracles, no off-site security, and no reliance on external liquidity.”
“However, BNB.RUNE and ETH.RUNE have privileged access to the ‘mint’ function of the state machine. Anyone presenting these tokens can mint new RUNE tokens, as well as make the state of THORChain dependent on these two networks.” , reads in the blog post.
THORChain’s move has coincided with a significant 18.6% bounce in RUNE prices to $2.61 in the last 24 hours. Measurement over a longer time frame also shows promising signs, as RUNE has gained 65.9% in the last 30 days, according to data from CoinGecko. However, RUNE is still 87.5% below its all-time high of $20.87 from May 19 last year.
In addition to allowing users to trade assets for liquidity pools across various networks such as Binance Smart Chain, Ethereum, Dogecoin, and Bitcoin, THORChain also allows the trading of synthetic assets, which are tokenized derivatives that mimic the value of other assets such as stocks and commodities.
Within the framework of the recently launched mainnet, the project aims to offer greater security measures and network stability, increased decentralization, a new governance process, establishing new chain integrations, wallet integrations, aggregator implementations, and rolling out a single-sided performance feature.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.