$RUNE Supply Drops Sharply, THORChain Fully Unlocks Native Token
THORChain has officially announced that the native RUNE token has been 100% unlocked.
The most notable aspect is the supply. The RUNE supply volume has gradually decreased over several stages:
Initially: 1 billion tokens
Subsequently reduced to 500 million
After burning 64.4 million RUNE from the reserve fund following the ADR-023 proposal in May the supply dropped further to 360 million tokens.
This continuous supply reduction is a significant fundamental signal: fewer tokens in circulation mean reduced potential selling pressure, provided demand remains stable or increases.
Additionally, THORChain announced its system revenue allocation:
59% of system revenue goes to nodes that must stake RUNE to secure the network. This revenue is derived from transaction fees paid by users for cross-chain transactions.
20% is allocated directly to the protocol's own liquidity. Every three days, the protocol deposits RUNE into the pool with the highest depth relative to transaction fees; half of this is held as RUNE and controlled by THORChain.
This structure demonstrates how revenue from transaction fees is redistributed to network validators and the protocol's own liquidity creating a self-contained mechanism rather than relying solely on token inflation.
The reduction in supply from 1 billion to 360 million is a long-term narrative. However, let's be realistic: strong fundamentals do not guarantee an immediate price surge. The market still requires capital inflows and a return of genuine demand.
With the supply down 64% from its initial level, what are your thoughts on this fundamental story?
News is for reference, not investment advice. Please read carefully before making a decision.
THORChain has officially announced that the native RUNE token has been 100% unlocked.
The most notable aspect is the supply. The RUNE supply volume has gradually decreased over several stages:
Initially: 1 billion tokens
Subsequently reduced to 500 million
After burning 64.4 million RUNE from the reserve fund following the ADR-023 proposal in May the supply dropped further to 360 million tokens.
This continuous supply reduction is a significant fundamental signal: fewer tokens in circulation mean reduced potential selling pressure, provided demand remains stable or increases.
Additionally, THORChain announced its system revenue allocation:
59% of system revenue goes to nodes that must stake RUNE to secure the network. This revenue is derived from transaction fees paid by users for cross-chain transactions.
20% is allocated directly to the protocol's own liquidity. Every three days, the protocol deposits RUNE into the pool with the highest depth relative to transaction fees; half of this is held as RUNE and controlled by THORChain.
This structure demonstrates how revenue from transaction fees is redistributed to network validators and the protocol's own liquidity creating a self-contained mechanism rather than relying solely on token inflation.
The reduction in supply from 1 billion to 360 million is a long-term narrative. However, let's be realistic: strong fundamentals do not guarantee an immediate price surge. The market still requires capital inflows and a return of genuine demand.
With the supply down 64% from its initial level, what are your thoughts on this fundamental story?
News is for reference, not investment advice. Please read carefully before making a decision.