Is THORChain still going to become fully decentralized this month?

Key Takeaways:

  • THORchain seems to have abandoned plans to dissolve the network.
  • THORChain is relinquishing the use of rune-pegged tokens.
Is THORChain still going to become fully decentralized this month?
Is THORChain still going to become fully decentralized this month?

LAGOS (CoinChapter.com) — The status of THORChain, a cross-chain decentralized exchange, has come under scrutiny over its announcement in 2020 that the network will become obsolescence in July 2022.

In detail, several users have put forward questions concerning the intended dissolving of the network was still taking place. Recall that THORChain, in Sep. 2020, tweeted to announce its community will take it over the blockchain network.

It indicated that its treasury would be shared among 5-10 community teams for protocol and middleware development, interfaces, and education/promotion. However, that doesn’t seem to be the case, as the blockchain network is currently focused on integrating with more DEX.

Furthermore, THORChain has also changed from its initial proposal that the network will run on its nodes in 2022. The blockchain network recently went live on seven supported networks.

Additionally, THORChain, which started as a project at the Binance hackathon in 2018, seems to have abandoned all plans for dissolution.

According to an in-depth review of its website and social accounts, the network is only looking to tighten security. It is also planning to phase out the use of rune tokens issued on Ethereum and BNB Chain.

THORChain Activates Killswitch For Ethereum And BNB Chain

Meanwhile, in a parallel development, THORChain has officially announced plans to phase out RUNE tokens issued on the Ethereum and BNB Chain blockchains.

The blockchain network informed the community of its plans to phase out two rune-pegged tokens (ETH.RUNE and BNB.RUNE). As a result of this move, THORChain activated what it dubbed a kill switch at block #tel:6500000.

The killswitch is a network function that will gradually lower the redemption rate of BNB.RUNE and ETH.RUNE from 1:1 to 1:0. Notably, the reduction will happen over the next 12 months. Moreover, it is worth noting that investors will still be able to swap to RUNE at a diminishing rate with the kill switch.

“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.”

THORChain said.

The cross-chain DEX indicated these tokens were a potential security issue, hence their removal. It explained that the tokens had unnecessary access to THORchain’s state machine and could be used to infiltrate the network.

THORChain developers have previously disclosed a vulnerability on the BNB-chain, which a white hat hacker detected. However, it was quickly patched before any losses were made. The developers added that transferring tokens to the THORChain native network made it less susceptive to attacks.

RUNE Plummets 8%

Meanwhile, THORChain native token was down by more than 8% as the entire crypto market tumbled again. As a result, the token has lost about 15% of its value in the last seven days and trades at $2.26.

RUNE/USD performance in the last seven days
RUNE/USD performance in the last seven days. Source: CoinGecko

Coingecko indicated that RUNE’s market cap has also dropped significantly as it currently sits at $682 million. Furthermore, RUNE currently has a 24-hour trading volume of $117 million with a circulating supply of 300 million RUNE coins and a total supply of 500 million.

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