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<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 $50 million in market-buy on RUNE (200% collateralization ratio).”
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A THORChain developer under alias @Pluto9r said in an X post that with the proposal, the project has a “real shot at being the world’s deepest BTC pool,” urging the community to support the proposal.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 I see it as doubling down on our moat, which is providing <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$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>
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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>
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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>
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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

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