The BEP-2 and ERC-20 based variants will be exchanged for the updated native RUNE token after THORChain’s long-awaited mainnet late last month.
Cross-chain exchange and proof-of-bond network THORChain has finally activated the killswitch that will phase out support for the BEP-2 and ERC-20-based variants of the RUNE token.
BNB.RUNE and ETH.RUNE, also known as IOU tokens, will be exchanged for the updated and fully native RUNE token following the long-awaited THORChain mainnet late last month.
Going forward, these tokens will progressively depreciate over the next 12 months as the project aims to encourage the adoption of its fully unified variant of RUNE and enable greater asset interoperability.
Users who hold their IOU tokens during centralized changes will have their tokens automatically updated to the new native RUNE. Those who keep their tokens in private wallets will need to create a new THORChain-backed wallet and then click an upgrade button to make the switch.
The THORChain team announced via Twitter on July 18th that Killswitch will go live at block 6500000 and that 1:1 exchange rates will “linearly decrease to 1:0 over the next 12 months” when the IOU tokens become worthless will.
Today the BEP-2 and ERC-20 $RUNE kill switch will activate at block 6500000. Upgrades will no longer be 1:1. Exchange rates will fall linearly to 1:0 over the next 12 months.
If you are storing $RUNE in a self-custody wallet, make sure your wallet address begins with “thor1…”.
— THORChain (@THORChain) July 18, 2022
The team previously explained in a blog post earlier this year that the move was part of a push towards further decentralization of its network, as it highlighted issues with propagating IOU RUNE across two separate networks:
THORChain is extremely strict as there are no third-party dependencies, preferring to manage everything in-house. There are no oracles, no offshore security and no reliance on external liquidity.
However, BNB.RUNE and ETH.RUNE have privileged access to the state machine’s “Mint” function. Anyone presenting these tokens can mint fresh RUNE and make the state of THORChain dependent on these two networks,” the blog post reads.
THORChain’s move coincided with a significant 18.6% surge in RUNE prices to $2.61 in the last 24 hours. Measurement over a broader timeframe is also showing promising signs, with RUNE up 65.9% over the past 30 days, according to data from CoinGecko. However, RUNE is still down 87.5% from its all-time high of $20.87 on May 19 of last year.
Aside from being able to trade assets through liquidity pools across various networks like Binance Smart Chain, Ethereum, Dogecoin, and Bitcoin, THORChain also supports trading synthetic assets, which are tokenized derivatives that mimic the value of other assets like stocks Were.
Under the recently launched mainnet, the project aims to provide improved security measures and network stability, greater decentralization, a new governance process, the establishment of new chain integrations, wallet integrations, aggregator implementations and the introduction of a one-way yield function.
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