RUNE Token
Web3 / cryptocurrency types
RUNE is the native cryptocurrency of the THORChain protocol, functioning as the settlement asset, security mechanism, and governance token for the entire cross-chain liquidity network. RUNE serves multiple critical roles: liquidity providers must deposit RUNE alongside other assets to participate in pools, validators must stake RUNE to operate network nodes and earn rewards, and the token is used to pay swap fees on the protocol. The tokenomics are designed to incentivize network participation through inflationary rewards to validators and liquidity providers, with total supply capped to create long-term scarcity and value accrual. Example: When a user swaps Bitcoin for Ethereum on THORChain, a portion of the transaction fee is paid in RUNE, which is then distributed to liquidity providers and validators who facilitated the cross-chain swap. Why it matters for cryptocurrency: RUNE represents a new token model where value accrual is tied directly to cross-chain transaction volume rather than speculative demand, creating sustainable incentives for network participants.
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