Thorchain completes one week of ADR 17: $RUNE burn
Sahil Thakur
Thorchain’s latest upgrade, ADR 17, has officially completed its first week, bringing significant attention to its unique Rune burning mechanism. The ADR 17 protocol, which burns 0.01% of system income every block, was implemented a week ago with the aim of reducing the total supply of Rune ($RUNE) over time.
Since its launch, a total of 36 $RUNE have been burned, with an average daily burn rate of 4.5 $RUNE. While this is a modest start, the potential for more significant burns exists, as node operators can vote to increase the burn rate. Thorchain has hinted at a target burn rate of 5% of system income in the future, a massive increase from the current 0.01%.
At the current rate, the deflationary mechanism is only just beginning to make an impact. However, should the burn rate increase to 5%, as suggested by prominent Thorchain community member @jpthor, the amount of $RUNE burned could reach 18,000 since ADR 17’s implementation, averaging 2.2k $RUNE burned per day. This would result in approximately 803k $RUNE burned over the course of a year.
The long-term vision of ADR 17 is clear: to decrease $RUNE’s total supply, increase scarcity, and potentially drive value for holders as system income continues to grow. While the first week has yielded conservative results, the mechanism lays the foundation for a deflationary future for Thorchain’s native token.
Source: Rayyyk on X
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