Oct Logo
Search Icon
Oct Logo
Search Icon
Bitcoin iconETH
$0000
arrow icon0.61%
Thorchain completes one week of ADR 17: $RUNE burn

Thorchain completes one week of ADR 17: $RUNE burn

Image of Sahil ThakurSahil ThakurNews

Oct 5, 2024

Written By Sahil Thakur

Author: Sahil Thakur

Written On: Sat, 05 Oct 2024 05:47:51 GMT

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

Trusted

Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.

Hero Image
Share with your community!
FacebookXLinkedIn
Hero Image
Share with your community!
FacebookXLinkedIn

Related reads