THORChain has activated a “killswitch” which will phase out runes (RUNE) based on the Ethereum and BNB Chain blockchain in favor of runes issued on its native blockchain.
“The BEP-2 and ERC-20 $RUNE killswitch will be activated at block 6500000. Upgrades will no longer be 1:1,” the devs said in a tweet on Monday. BEP-2 and ERC20 refer to tokens issued on the BNB Chain and Ethereum networks, respectively.
The killswitch will reduce the redemption rate of the BNB Chain-based Rune (BNB.RUNE) and Ethereum-based Rune (ETH.RUNE) from 1:1 to 1:0 over the next year.
This means that 1 BNB.RUNE presented six months after the killswitch will only be exchanged for 0.5 THOR.RUNE, and after one year it will be exchanged for 0.0 THOR.RUNE, which means that the token is effectively fully depreciated.
Until now, RUNE was issued on the BNB Chain and Ethereum networks as an IOU, meaning the tokens were exchangeable for an equivalent value of THORChain-based assets. Users acquired the tokens 18 months before the launch of its multi-chain testnet, “Chaosnet”.
Anyone could have acquired enough RUNE to run a “THORNode”, which processes transactions on the THORChain network and validates them.
However, the developers explained earlier in the year that BNB.RUNE and ETH.RUNE, the two recognition tokens, allow third parties to create new tokens using THORChain’s “minting” function, which makes THORChain depending on the two networks.
“Six months ago, a white hat found a critical vulnerability, which was *almost* exploited but quickly prevented, around this currency functionality on Binance Chain”, underlined the developers then. “ETH.RUNE also has unfavorable characteristics for long-term holders, being the transferTo() function, which allows users to be easily phished. »
According to the developers, transferring the tokens to THORChain’s native network makes the network less vulnerable to exploits.
Meanwhile, THORChain developers said in Monday’s tweet that several major exchanges that listed BNB.RUNE have not yet made the transition to the rune issued by THORChain.
“This has created two separate markets for RUNE and one market that is both unnecessary, and problematic, because it slows network adoption,” they said. “These exchanges have not yet received a requirement to move to native RUNE.
THORChain allows users to exchange bitcoin (BTC) for any other supported asset without the need for bridges or wrapped assets. Bridges are software that allow users to transfer coins between different blockchains.
The protocol now supports trading between seven major tokens, including bitcoin, ether (ETH), binance coin (BNB), dogecoin (DOGE), litecoin (LTC), bitcoin cash (BCH), and rune. Support for Cosmos (ATOM) and Avalanche (AVAX) is expected in the coming months.
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