Shouldn't the node operators stay anonymous for obvious reasons? 🤔
💡Community Spotlight #2: THE BONDSMITH
We're back again in our new series, shining a light on the people who help empower @THORChain
⚡️ Every week, we're reaching out to interview standout contributors and our 2nd guest is $RUNE Fund Manager and THORChain Veteran @KentonC137
Throw this one some love, Chads. It's well-deserved because he has a lot of insight to offer.
Optimistic security is not "no security", but it might not be enough to safeguard the @THORChain network.
If removing the strictBondLiquidityRatio allows nodes to take more from the network than they have bonded, that’s a massive risk.
And if nodes have the opportunity to exploit the network and steal funds, they eventually will.
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If you have an X account, you can claim an airdrop. Account age and number of followers dictate the size of your airdrop.
xdmars.com?invite=wsMzTQ1YHI
Let’s get one thing clear: @THORChain doesn’t hide anything—every swap is fully traceable, every single coin. Ethereum itself isn’t halting these bad actors, so why should THORChain, which is equally decentralized, shut down or censor?
You don’t blame a highway for bank robbers using it; THORChain is simply an open network, not a laundering service
eXch just threw @THORChain under the fucking bus omg lollll 💀
is v funny bc eXch relies on Thorchain whenever they run out of liquidity.
In the last 2 days, eXch has laundered more than 29,000 ETH that was stolen from Bybit by Lazarus.
It seems we're about to seriously undermine @Thorchain.
The recent removal of block rewards, instead of encouraging RUNE holding for income, attempts to create deflation to counter sell pressure. Yet we forget that this pressure isn't from reward cashouts, but mainly from disappointed holders selling their bags.
The incentive pendulum currently sits at 56% for nodes, with $RUNE priced at $1.30. Nodes earn approximately 140 RUNE per day (around $5,600 per month). Node Operators managing others' RUNE make about $1,100 per month per node with a 20% revenue share.
As the price of $RUNE (hopefully) rises, the pendulum will further suppress node income.
So the system is likely to overshoot the projected 4-5% yearly APY, probably dropping to around 2-3%.
I wonder if panic will start among Node Operators.
Even more concerning is that these reduced returns make LP profitability nearly impossible. They were already underwater, and now recovery looks even harder.
Instead of fostering growth, it appears we are burying the system even deeper.
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I expect a significant demand for $TCY token once it's out, the starting point of $0.1 per token seems like a steal.
I'm pretty sure the price will increase sharply - it's an interesting opportunity , as TCY represents ~$200mln debt but has unlimited upside from ongoing protocol revenue (10% forever, no cap). $RUNE
Despite the challenges in the @THORChain network, there are strong odds of overcoming them. As new connections ( $SOL, $Tron, etc.) emerge, @RujiraNetwork is set to introduce ultimate finance instruments that will upgrade and leverage the Thorchain ecosystem.
Those who believe now have a second chance— $RUNE around $1 won't last long! These are the best times to get a node if your finances allow.
The incentive pendulum currently sits at 53% for nodes, yielding an 8% APY at today’s prices. With RUNE at $4, I estimate the pendulum will drop to around 30% for nodes, reducing operators' APY to about 4-5%.
If "liquidity nodes" from Prop6 are introduced, we may face challenges; LP bonds competing with RUNE bonds could pressure node operators to sell their RUNE, as it may no longer be worth "holding" for them.
Nodes are currently earning approximately 220 RUNE/day for every 1 mln RUNE deposited. If a node operator is managing other users' RUNE rather than their own, the average return of 20% (typical for THORChain) at today’s price translates to around $1,800.
This poses a significant challenge for those using cloud services, as the operational costs approach $4,000. In contrast, node operators running their own hardware are in a better position due to lower costs.
It seems likely that there are no operators left running nodes for others in cloud services, given these financial pressures.
It's concerning to believe that eliminating rewards will resolve the underlying issues.
Nodes are selling around 6% of their income, while liquidity providers (LPs) are largely facing significant losses, leaving them with little to sell.
Instead of addressing the root problems, it seems we're simply stripping away the last incentive that attracts participation. 🤦
THORChain nodes voted to remove block rewards 🔥
From 25,000 $RUNE per day emitted from the Reserve down to 2 per day, eliminating inflation completely
100% of income is now from swap fees, with a deflationary burn of 5% system income
Lancelot ⚡️ retweeted
So you're saying the ~30k $RUNE daily rewards are holding back the price? Even if fully sold (let's say 30% nodes, 70% LPs with $RUNE above $4), do you really think that amount suppresses the price? ETH prints ~$5M/day, SOL ~$16M/day, while $RUNE, at $4, prints ~$120k/day!
Just look at the holder counts for these three networks. No way THORChain enters the top 10 market cap with its current numbers.
@jpthor's anti-marketing mania didn't work. See WEWE's launch – the "expend effect" fizzled when participation dried up.
@THORChain did $1B in January, yet $RUNE holders haven't grown much in years. The problem? $RUNE is hidden behind interfaces. Most users don't know they're using TC.
$RUNE remains niche with a closed community, and it will stay that way if nothing changes. JP thought deflation via increased burn (like Solana, which burns ~50%) was the key. You're going in a different direction, but if you want to reduce supply, THORChain needs another mechanism to drive the price up.
9R gets 5% of revenue. Why not allocate an extra 1-3% to a good PR firm? Review performance in a few months and replace if needed.
Very questionable move
80%+ of the "dump" volume comes from interfaces, not node operators.
Ledger accounts for 30%+ of the TC volume, charging 1.5%, but doesn't hold those Rune; they sell. TC gets about 0.05% from their transactions. Introducing Liquid Nodes and lowering block rewards simultaneously might not be wise, as nodes could start selling with increased competition from LPs ready to stake for smaller rewards.
At $4 per $Rune, node operators earned about 100 Rune daily. Lowering rewards by 80% reduces this to about 60 Rune daily. Nodes holding about 1 million Rune won't be happy, while LPs will be pleased, gaining an additional Rune per day if they add their LP into nodes. We might end up with half of Nodes' Rune, about 100 million $Rune, being replaced with LP, leading to potential sell pressure from 100 million Rune in Nodes.
I think we will be able to lower block rewards by 80%, neutralize its $RUNE sell pressure entirely and do so sustainably for the benefit of both DLPs & Nodes. Expect Proposal 6 implementation plan next week with this and more details! @Orion_9R and I will keep doing the math ⚡️
Seems like there will be no more sell pressure from Nodes that churned out.
$Rune probably up only now
The proposal is indeed very good.
@THORChain will become much more resilient and strong.
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Lancelot ⚡️ retweeted
Current Situation
-------------------------
At the time of this communication, 31 nodes have requested to leave the @THORChain network.
The network is experiencing a contraction as RUNE price declines and nodes leave the network, but the protocol remains operational in its core blockchain and swap functionality remain unaffected.
Many integration partners are currently paused in order to protect their users in the current volatility.
Path Forward
-------------------------
Nine Realms proposes the implementation of the current version of the Priority Haircuts proposal (gitlab.com/-/snippets/480126…).
This implementation gives Savers and Borrowers the option to exit their positions with a haircut that can improve over time as things stabilize and network health improves.
Despite network contraction, the nodes and base amount of liquidity that remains will allow the network to continue to generate revenue so the unwind plan can progress.
We will immediately kick off a node operator vote to confirm the execution of this plan.
To the Community
-------------------------
Nine Realms remains steadfast in our dedication to this network, and will do everything we can to keep the protocol operational with the goal that Borrowers and Savers can be made whole. Nine Realms believes that implementation of the proposal yields the best opportunity for network survival.
To ecosystem devs and contributors: many of you have been working on THORChain for years, your efforts are truly appreciated. Additional chain integrations, AppLayer remain critical for the network’s growth.
In one year we will smile reading such posts.
Thorchain goes nowhere. Period.
Urgent proposal to acquire @THORChain and provide assistance to the holders and creditors.
As the protocol serves as an open-source community-driven, true Web3 building project, this proposal will be transparent and accessible to the public.
Unfortunately, we are witnessing the gradual decline of what was once a promising project.
Instead of achieving great results and hitting a new ATH, the community was blindsided by $200M in toxic frozen loans, facilitated without any warning and made possible through the use of an admin key.
Rather than concentrating on building Rune, the founder is pursuing nine different projects, leading to unclear strategies that raise numerous questions.
WeWe / Deca Swap / Vultisig / WeWe Swap / Thor / Ruji / Vamp / YIELDI / TraitForge
To prevent the current crisis, @jpthor needed to raise the large VC round by $50-100M, work on regulatory compliance, secure appropriate US network, and focus on @THORChain achieving 50-60% market fit along with Round C funding.
Unfortunately, the project currently lacks any backers. In fact, the bank run has not yet started, but if it does, an amount between $5-10M could lead to a collapse in price similar to what happened in the Luna case.
I understand that many supporters of the project are holding onto hope for a miraculous turnaround.
"That's it, that's it, yes, that's it tomorrow." However, it's often more prudent to analyze the facts, figures, and current situation.
Holders of the project are being misled, creditors are experiencing years of delays, and the founder is engaged in unclear schemes:
x.com/ax1vc/status/188494423…
The entire Thorchain ecosystem relies heavily on the generosity of @TrustWallet, who are outstanding builders and the largest provider.
Previously, it was difficult to envision major new integrations for Rune. However, following recent events, we can only hope for a miracle.
Meanwhile, competitors are actively seeking to penetrate the remaining top sites, and those sites themselves are considering hybrid models (like Exodus, which is incorporating a CEX component and plans further refinements).
If @TrustWallet eventually decides to halt integrations or redirects volumes to a competing provider, we can only imagine the impact this would have on the price of Rune and the assets of its lenders.
At the same time, @TrustWallet demonstrates the potential for scaling, having nearly surpassed the 200M user mark and achieving a MAU count comparable to top-tier fintech like NuBank, all while maintaining a solid reputation and avoiding big management issues.
Our proposal is straightforward.
We're offering a syndicated deal in which:
1) Trust Wallet will acquire THORChain (let’s set aside discussions about decentralization for now; particularly when you understand the details and nuances involved).
2) Funds will be disbursed to creditors immediately, financed by a pool of VCs led by YZi Labs (formerly @BinanceLabs).
3) @EowynChen will assume the role of CEO for both companies.
4) Rune -> TWT.
5) A portion of the protocol's revenue will be allocated to marketing support for the unified on-chain asset (with genuine marketing efforts, not painted Cybertruck).
Results:
a) Creditors will receive an instant refund with interest.
b) Former RUNE holders will have a new asset that will consistently benefit from the protocol’s revenue, without relying on complex schemes.
c) TWT and Trust holders will see strengthened valuations and multiples.
d) Current contributors to the Thorchain protocol will receive bonuses, enjoy a stable future, and have the opportunity to safely develop the leading web3 product.
e) Support from the family office of @cz_binance.
Ultimately, this initiative will create the most reliable on-chain wallet with a swap provider in the industry.
Actually this might be a good idea
This @THORChain / BTC borrow drama is silly. Squirrel can solve problem easy.
TC could use 1% of revenue to buy BTC into its treasury until it owns a number of BTC equal to the number of BTC for loan redemption
Maybe 3% of revenue would satisfy the FUDdies
Squirrel would vote to 0%. Because it's not a problem
Why?
RUNE is short some BTC. So if you own some RUNE, you are short some BTC.
How to deal with that? If you are worried, buy some BTC to offset the consequence of BTC outperforming RUNE. Bingo, you net position is no longer short BTC
Smart money buys when there’s blood in the streets. But you, anon, can’t resist buying high and panic selling low, huh?
@THORChain $Rune
Thread on $RUNE price performance and @THORChain's approach:
1/ As a $RUNE holder, I share the frustration. Despite @THORChain achieving major technical milestones and $400M+ daily volumes, $RUNE hasn't reached expected price levels. This creates a disconnect between technical success and token performance.
2/ The reason is clear: @THORChain team prioritizes infrastructure over marketing - explaining both the protocol's technical excellence AND $RUNE's current market performance. While admirable, some marketing investment could help bridge this gap.
3/ This approach has delivered incredible tech (adopted by @Ledger, @TrustWallet etc.) and real utility, but it also means $RUNE price growth depends mostly on organic awareness - much slower than with active marketing efforts.
4/ About Node Operators vs Holders dynamic:
- Yes, NOs earn steady rewards from volume
- But sustainable volume is what makes the protocol valuable long-term
- Short-term price pumps without real adoption would be temporary
5/ The tokenomics work as designed - the issue isn't broken mechanics, but rather lack of retail demand for $RUNE itself. Even major integrations don't directly boost market cap - they increase volume but don't create immediate token demand.
6/ Hard truth: great tech ≠ immediate market performance. Some strategic marketing investment alongside the solid infrastructure could help accelerate adoption while maintaining long-term focus.
7/ The path forward:
- Technical merit is proven
- Growing market cap requires direct retail demand for $RUNE
- Some balanced marketing effort could speed up this process
- Question is finding the right balance between building and market awareness
Hey @jpthor i want to bring to your attention something you see and hear from others members of the TC community other than myself, and i think i speak for us all when i say that as loyal RUNE holders, we’ve been patient since 2021, sitting through a brutal bear market, believing in @THORChain vision. The fundamentals today are 10x stronger than 2021, yet the price is nowhere near ATH or even 2 digits. This isn’t what we expected after years of supporting the project.
Node operators make great monthly rewards and seem focused on increasing volume to boost their income, but this creates sell pressure on RUNE. Meanwhile, holders who are the backbone of Thorchain are left holding bags that don’t move.
RUNE OGs don’t want to wait another 4 years to see an ATH. While having a vision for the future of Thorchain is great, it shouldn’t come at the expense of RUNE holders, especially while node operators enjoy a comfortable monthly income.
We need a real plan to fix the tokenomics, reduce sell pressure, and create price appreciation. What’s being done to align incentives and make holding RUNE worthwhile again?
Looking forward to your thoughts and leadership on this matter.
#RUNE #thorchain