Boost

Defi

Rune

THORChain

<a href="https://bitcoinworld.co.in/thorchain-proposes-burning-300m-in-rune-to-boost-lending-activity/" title="THORChain Proposes Burning $300m In Rune To Boost Lending Activity" rel="noopener noreferrer nofollow"></a>
Developers of THORChain have unveiled a community proposal to burn around $300 million worth of RUNE tokens to boost lending activity.
In a community proposal <a href="https://gitlab.com/thorchain/thornode/-/merge_requests/3403" rel="noopener noreferrer nofollow">published</a> on Jan. 30, the THORChain developers suggested burning 60 million RUNE tokens (worth around $300 million as of press time) from the Standby Reserve fund, representing a 12% of the max supply of RUNE.&nbsp;
The move, according to the initiative’s description, is set to make room for more loans on THORChain.
“By burning ~$300 million in RUNE from standby, it means THORChain can onboard another $100 million in Collateral (33% Lending Lever), which is a $50 million in market-buy on RUNE (200% collateralization ratio).”
See Also: <a class="row-title" href="https://bitcoinworld.co.in/breaking-ripple-co-founder-fell-victim-to-massive-hack-over-213-million-xrp-lost/" aria-label="“BREAKING: Ripple Co-founder Fell Victim To Massive Hack, Over 213 Million XRP Lost” (Edit)" rel="noopener noreferrer nofollow">BREAKING: Ripple Co-founder Fell Victim To Massive Hack, Over 213 Million XRP Lost</a>
A THORChain developer under alias @Pluto9r said in an X post that with the proposal, the project has a “real shot at being the world’s deepest BTC pool,” urging the community to support the proposal.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 I see it as doubling down on our moat, which is providing <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> holders decentralized access to the rest of the Defi ecosystem. If you look at the majority of volume on the network, it’s to/from <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a>. Thorchain is the rails between Defi (EVM, SOL, etc.) and money ($BTC). We have…
 — Pluto (9R) <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@Pluto9r) <a href="https://twitter.com/Pluto9r/status/1752450976936522169?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 30, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Despite the optimistic outlook, the THORChain community has shown some confusion about the potential consequences of the proposal.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 I don't understand how burning 60M makes more room? The standby reverse is currently not part of the circulating supply. Will burning the reserve lower the max supply from 500M to 440M?
 — runies (@GLandSATS) <a href="https://twitter.com/GLandSATS/status/1752418704837775376?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 30, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
While some members expressed concerns about how burning nearly $300 million worth of RUNE would enhance lending capacity, others conveyed hesitancy to support a lending design that “relies upon an assumption.”
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 I cannot support a lending design that relies upon an assumption. The idea Rune will outperform BTC/Eth in way that makes lending workable is a breach of first principles. This is not at all a safe assumption. If Rune can wildly outperform BTC it can also wildly underperform.
 — patriotsounds (@patriotsounds) <a href="https://twitter.com/patriotsounds/status/1752419952836153669?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 30, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In response, THORChain justified the burning of 60 million tokens, asserting that it would make “all outstanding RUNE notionally more valuable.”&nbsp;
As of press time, the proposal still sparks ongoing discussions within the THORChain community as participants weigh the potential benefits and risks associated with the suggested token burning.
#Binance #WRITE2EARN
The post <a href="https://bitcoinworld.co.in/thorchain-proposes-burning-300m-in-rune-to-boost-lending-activity/" rel="noopener noreferrer nofollow">THORChain Proposes Burning $300m In Rune To Boost Lending Activity</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

THORChain Proposes Burning $300m In Rune To Boost Lending Activity

ItsBitcoinWorld

Other articles published on Feb 1, 2024

Genesis fined $21 million to settle Gemini Earn lawsuit

FTX Abandons Hope For Restart, Focuses On Asset Liquidation To Repay Customers

Multiplayer Call of Duty Games Shift Focus to Core Releases

Bitcoin Price Prediction: Rich Dad Poor Dad Author Robert Kiyosaki Expects To Make A Fortune From...

Rario Reverts Proposed Changes to Rewards System

The value of the JUP token experiences a surge following an extensive $700 million airdrop of Jup...

Join our free newsletter for daily crypto updates!