{"id":12646,"date":"2025-02-12T11:17:49","date_gmt":"2025-02-12T11:17:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=12646"},"modified":"2025-02-12T11:17:49","modified_gmt":"2025-02-12T11:17:49","slug":"thorchain-at-crossroads-a-chess-move-or-rune-death-spiral","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=12646","title":{"rendered":"THORChain At Crossroads: A Chess Move, Or RUNE Death Spiral?"},"content":{"rendered":"<div>\n<p>THORChain is trying to prevent a crisis. With Thorchain block rewards down 99%, will RUNE price recover or drop even further as validators exit?<\/p>\n<p><span data-preserver-spaces=\"true\">THORChain allows users to swap tokens across multiple chains. For example, you can swap ETH for BTC cheaply and securely. While this service is still available, the team <\/span><span data-preserver-spaces=\"true\">expanded<\/span><span data-preserver-spaces=\"true\"> its offerings, introducing token lending and borrowing.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\"> There are harsh lessons from the painful<\/span><span data-preserver-spaces=\"true\">\u00a0collapse of<\/span><span data-preserver-spaces=\"true\"> Celsius, Voyager, and BlockFi<\/span><span data-preserver-spaces=\"true\">. And <a class=\"general-link\" href=\"https:\/\/thorchain.org\/\" target=\"_blank\" rel=\"noopener nofollow\">THORChain<\/a> had to scramble not to fall into this abyss <\/span><span data-preserver-spaces=\"true\">in January 2025.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_67ac80f48dc02\" data-coin-id=\"rune-thorchain\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_67ac80f48dc02-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_67ac80f48dc02-chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67ac80f48dc02-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67ac80f48dc02-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67ac80f48dc02-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_67ac80f48dc02-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_67ac80f48dc02-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_67ac80f48dc02-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_67ac80f48dc02-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_67ac80f48dc02-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_67ac80f48dc02-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_67ac80f48dc02-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<h2><span data-preserver-spaces=\"true\">The $200 Million Debt Restructure<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The team decided to pause Bitcoin and Ethereum lending to salvage the situation and avoid a possible crisis. In addition, they will launch<\/span><span data-preserver-spaces=\"true\">\u00a0a new token as they restructure a whopping $200 million debt.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">To do this, the THORChain community approved \u201cProposal 6,\u201d which will convert nearly $200 million of \u201cunserviceable\u201d debt into equity. The team will issue 200 million Thorchain Yield (TCY) tokens as compensation<\/span><span data-preserver-spaces=\"true\">. <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Update from last summary:<\/p>\n<p>1) Proposal 6 implementation plan was released for commentary. Mostly well received except for DLP considerations. Implementation plan has been revised (v2: <a href=\"https:\/\/t.co\/6anX3JIqJs\" target=\"_blank\" rel=\"nofollow\">https:\/\/t.co\/6anX3JIqJs<\/a>) to allow DLP to choose to leave (lock in losses) or stay to recoup\u2026 <a href=\"https:\/\/t.co\/C6dmfRt0NU\" target=\"_blank\" rel=\"nofollow\">https:\/\/t.co\/C6dmfRt0NU<\/a> <a href=\"https:\/\/t.co\/q0hnTsxV0i\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/q0hnTsxV0i<\/a><\/p>\n<p>\u2014 Runetard <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/26a1.png\" alt=\"\u26a1\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f36b.png\" alt=\"\ud83c\udf6b\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f4a6.png\" alt=\"\ud83d\udca6\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f680.png\" alt=\"\ud83d\ude80\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> (@therunetard) <a href=\"https:\/\/twitter.com\/therunetard\/status\/1888722500978438175?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 9, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">TCY will <\/span><span data-preserver-spaces=\"true\">be distributed<\/span><span data-preserver-spaces=\"true\"> to lenders and savers at 1 TCY per USD of defaulted debt. <\/span><span data-preserver-spaces=\"true\">In a bid to<\/span><span data-preserver-spaces=\"true\"> encourage more participation, TCY holders will receive 10% of THORChain\u2019s revenue in perpetuity.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The result: An 80% plunge in RUNE prices.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">THORChain Drops Block Rewards by 99%<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">And it gets worse for RUNE holders, most of who are THORChain validators.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The community voted <\/span><span data-preserver-spaces=\"true\">once more<\/span><span data-preserver-spaces=\"true\"> to drastically reduce the block rewards distributed to validators from 25,000 RUNE to 2 RUNE per day. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This governance decision and the community\u2019s choice would <\/span><span data-preserver-spaces=\"true\">either<\/span><span data-preserver-spaces=\"true\"> likely backfire or see the team lauded as geniuses should this maneuver pay off and RUNE recover from the supply shock.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">THORChain nodes voted to remove block rewards <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f525.png\" alt=\"\ud83d\udd25\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><\/p>\n<p>From 25,000 <a href=\"https:\/\/twitter.com\/search?q=%24RUNE&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">$RUNE<\/a> per day emitted from the Reserve down to 2 per day, eliminating inflation completely<\/p>\n<p>100% of income is now from swap fees, with a deflationary burn of 5% system income <a href=\"https:\/\/t.co\/A3eDAziPnj\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/A3eDAziPnj<\/a><\/p>\n<p>\u2014 THORChain (@THORChain) <a href=\"https:\/\/twitter.com\/THORChain\/status\/1889319000158462093?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 11, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The vote means validators now have to contend with a sharp drop in earnings, and many will have to readjust, perhaps even slashing other operational <\/span><span data-preserver-spaces=\"true\">costs<\/span><span data-preserver-spaces=\"true\">\u00a0or even exiting. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It may be<\/span><span data-preserver-spaces=\"true\"> similar\u00a0<\/span><span data-preserver-spaces=\"true\">to what happened when Bitcoin halved its block rewards, forcing a miner sell-off and a purge of \u201cweak\u201d miners.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Admittedly, it is bold and unprecedented, especially considering that, like Ethereum or Solana<\/span><span data-preserver-spaces=\"true\">, for example<\/span><span data-preserver-spaces=\"true\">, validators play a crucial role in validating transactions and ensuring the network\u2019s security.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">At the end of the day, the decision will prove strategic and possibly be hailed as a chess move toward ensuring long-term sustainability<\/span><span data-preserver-spaces=\"true\">, but it<\/span><span data-preserver-spaces=\"true\"> remains to <\/span><span data-preserver-spaces=\"true\">be seen<\/span><span data-preserver-spaces=\"true\"> how validators will react<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">. If it backfires and they exit en masse, it would be a gamble that only fast-tracked the collapse of RUNE and the THORChain ecosystem.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">DeFi Protocol In The Future: Will RUNE Extend Losses?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">With block rewards eliminated, THORChain is operating in the \u201cfuture\u201d <\/span><span data-preserver-spaces=\"true\">where,<\/span><span data-preserver-spaces=\"true\"> eventually, even Bitcoin miners and Ethereum validators will be incentivized by the network but from fees whenever they approve a block of transactions. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This model will only pay off assuming protocol demand jumps and there is a promise of more users leveraging the network for swaps<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/www.tradingview.com\/x\/B7NiXwES\/\" alt=\"THORChain is trying to prevent a crisis. With block rewards down 99%, will RUNE recover or drop even further as validators exit?\" width=\"1499\" height=\"859\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/symbols\/RUNEUSDT\/\" target=\"_blank\" rel=\"noopener nofollow\">RUNEUSDT<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">Currently, as the community processes what happened, RUNE reversed gains of February 10 and ticked lower yesterday. Although prices are flat, RUNE is down 80% and trading below the 2024 range, and likely to trend even lower if panic sets in. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The local support is at $1, and bulls need to push above $2 for any chance of prices recovering, at least back to Q4 2024 highs of nearly $7.5.<\/span><\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/gamestop-gme-roars-9-as-saylor-triggers-bitcoin-rumor\/\" target=\"_blank\" rel=\"noopener\">GameStop (GME) Roars +9% As Saylor Triggers Bitcoin Rumor<\/a><br \/>\n<\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/thorchain-at-crossroads-a-chess-move-or-rune-death-spiral\/\">THORChain At Crossroads: A Chess Move, Or RUNE Death Spiral?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>THORChain is trying to prevent a crisis. With Thorchain block rewards down 99%, will RUNE price recover or drop even further as validators exit? THORChain allows users to swap tokens across multiple chains. For example, you can swap ETH for BTC cheaply and securely. While this service is still available, the team expanded its offerings, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-12646","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12646"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12646\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}