THORChain Removes RUNE’s BEP-2 And ERC-20 Tokens From The Network
Cross-chain protocol THORChain has enabled the killswitch, which will gradually stop supporting the BEP-2 and ERC-20-based variants of the RUNE token.
BNB.RUNE and ETH.RUNE, also known as IOU Tokens, is being swapped for the upgraded and fully integrated RUNE token to become the native token of THORChain after the platform’s long-awaited mainnet went live at the end of last month.
IOU Token is a form of token that allows users to buy, sell and hold the native token of a blockchain that is not yet active with the mainnet. By establishing a market for IOU Tokens, price discovery for the underlying asset will be created before that asset is converted to the mainnet.
Going forward, THORChain Token IOUs will gradually lose value over the next 12 months as the project aims to promote the adoption of the platform’s only unified variant, RUNE, which allows for strong asset interoperability.
Users who hold their IOU Token are automatically upgraded to RUNE. However, they are required to create a new wallet for THORChain to support and then click the upgrade button to make the switch.
The THORChain team stated on Twitter on July 18:
The team previously stated in a blog post earlier this year that this move was part of a push towards further decentralization of its network, as it highlighted issues with having IOU RUNE spread across 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.”
The latest development of THORChain is perhaps the biggest driver behind the RUNE price, which has increased significantly by 18.6% to $2.61 in the past 24 hours, combined with a positive market factor and a strong recovery wave led by Bitcoin and Ethereum. At press time, RUNE is trading around $2.577.
Apart from enabling users to swap assets by liquidity pools across various networks such as Binance Smart Chain, Ethereum, Dogecoin, and Bitcoin, THORChain also supports trading synthetic assets, which are tokenized derivatives that mimic the value of other assets such as stocks and commodities.
According to the newly launched mainnet, THORChain aims to provide enhanced security and network stability, greater decentralization, a new governance process, new chain integration establishment, and wallet and aggregator implementations.
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