RUNE Coin Pumps 18% As ThorChain Deactivated Non-Native Tokens

RUNE coin pumps 18% as ThorChain deactivated the non-native tokens option and the variants based on BEP-2 and ERC-20 are being swapped out for the native coin after the mainnet launch last month so let’s read more today in our latest altcoin news.

The cross-chain exchange and ThorChain network finally activated the killswitch that will wind down the support of BEP-2 and ERC-20-based variants of the rUNE token. The IOU tokens are getting swapped out for the upgraded RUNE token after the long waited variant of the mainnet last month. These tokens will lose their value in the next 12 months since the project also wants to foster the adoption of the RUNE unified variant and enable stronger asset interoperability. The users that will hold their IOU tokens on the centralized exchanges will have their tokens automatically upgraded to the new one and those that keep their tokens in private wallets will have to create a new wallet that will be supported by ThorChain and click an upgrade button to make this switch.

Today, the BEP-2 and ERC-20 $RUNE killswitch will be activated at block 6500000. Upgrades will no longer be 1:1. Exchange rates will linearly tick down to 1:0 over the next 12 months.

If you hold $RUNE in a self-custody wallet, ensure your wallet address begins with `thor1…`

— THORChain (@THORChain) July 18, 2022

The ThorChain team stated that the killswitch will go live at block 6,500,00 and that 1:1 exchange rates will tick down to 1:0 over the next year. The team stated in a blog post that the move will be a part of the push towards decentralization of the network as the issues with having IOU Rune spread on two separate networks:

“THORChain is extremely strict in having no 3rd party dependencies, preferring to manage everything in-house. There are no oracles, no off-shored security, and no reliance on external liquidity. However, BNB.RUNE and ETH.RUNE has privileged access to the state machine’s ’mint’ function. Anyone presenting these tokens can mint fresh RUNE, as well as making THORChain’s state dependent on these two networks.”

The move from ThorChain coincided with a strong 18.6% surge in RUNE prices and measured over a broader time frame that shows promising signs with the coin gaining 65.9% in the past 30 days. RUNE is still down by 87.5% since its ATH last year. Apart from enabling users to swap assets by the liqudity pools on various networks like Doge, Bitcoin, Ethereum, and Binance Smart Chain, ThorChains supports the trading of synthetic assets that are tokenized derivatives that mimic the value of other tokens or stocks and commodities.

Under the newly launched mainnet, the project aims to provide enhanced security measures and network stability, a new governance process, and new chain integrations which is why the Rune coin pumps continuously.