I've written about Thorchain here before a couple times. It's one of the few crypto projects that I actually believe can deliver on its promises. Yesterday, the project reached a milestone worth writing another post about:
1,000 stakers have now staked their RUNE tokens on RuneVault!
Pretty sure this is a first from any crypto project! So a celebratory cake is well deserved!
Currently, these stakers are receiving 1% weekly interest to use the Binance Chain FREEZE command to lock up their RUNE tokens. If their tokens are "frozen" when the Thorchain devs check the state of the chain on Monday morning here in Asia/Australia (where the devs are based), then those stakers are rewarded with a pro-rata portion of the 1 million RUNE tokens that the team distributes every week. It's the ultimate reward for HODLing.
These outsized returns won't last long, though. The RuneVault rewards will slowly decline once ThorChain's incentivized testnet begins operations, which should be soon. Currently, the team is working on its own testnet for BEPswap, which is sort of like a ThorChain lite just for Binance Chain assets. It looks really great:
Essentially, what the ThorChain project is doing is trying to create an application-specific blockchain to operate a cross-chain Uniswap incentivized by its own utility token (instead of ETH).
Read that sentence again if you don't get how mind-blowing that is.
Currently, there is over 90% of circulating RUNE supply staked. With that incredibly high staking ratio, which I think is probably unprecedented in the history of crypto projects, there’s only one way to get meaningfully invested into ThorChain...
YOLO market buy!!! 💁🏻♂️
🤜🏼🤛🏼 ...🏋🏻♂️
According to my models, at current market cap valuations, if the fully formed ThorChain product, known as Asgardex, just gets 5% of the supply of BNB tokens and 1% of the supply of BTC coins staked into its liquidity pools... the value of the RUNE token, the native utility token of ThorChain, would be worth, wait for it...
RUNE would be worth between $8 & $27
Now that depends on how fast that much bitcoin & Binance Chain BNB token was added to the Thorchain liquidity pools (LPs) and, of course, it depends on the total supply of RUNE at that time. There is a maximum supply of 500 million RUNE in the contract right now, with the majority of that set to be dedicated to a decade-plus emission schedule that is designed to bootstrap the security of the Thorchain blockchain.
Just so you know, that eye-popping RUNE valuation up above doesn't even factor in speculative pressures. In fact, Thorchain RUNE valuation is purely protocol-driven because
One, LPs in the not-so-long term default to the value of half RUNE / half staked token,
and
Two, to maintain the security of a Proof-of-Stake chain, 2/3 of RUNE tokens must be bonded to ThorNodes.
Thus, the market cap for the RUNE token will always be AT LEAST 3X the value of the assets staked into the Thorchain LPs.
As you can see from the chart, the price of RUNE has more than doubled since the Bitcoin Flash Crash event just about a month ago. If you aren't gonna get on the train soon, we just might leave you at the station!
Posted via Steemleo