THORChain Developers Propose Burning $300 Million Worth of RUNE Tokens
Developers of THORChain have put forward a community proposal to burn approximately $300 million worth of RUNE tokens with the aim of boosting lending activity. The proposal suggests burning 60 million RUNE tokens from the Standby Reserve fund, which represents around 12% of the max supply of RUNE. This move is intended to create more space for loans on THORChain.
“By burning ~$300 million in RUNE from standby, it means THORChain can onboard another $100 million in Collateral (33% Lending Lever), which is a $50 million in market-buy on RUNE (200% collateralization ratio).”
– THORChain
Community Response and Discussion
The proposal has sparked both optimism and confusion within the THORChain community. While some members are concerned about how burning such a large amount of tokens will enhance lending capacity, others are hesitant to support a lending design that relies on assumptions. The ongoing discussions among participants revolve around weighing the potential benefits and risks associated with the proposed token burning.
Hot Take: Evaluating the Impact of Token Burning on THORChain
The recent community proposal to burn $300 million worth of RUNE tokens on THORChain has generated mixed reactions within the community. While proponents argue that it will increase lending activity and make outstanding RUNE tokens more valuable, skeptics express concerns about relying on assumptions and potential underperformance. As the discussions continue, it remains to be seen how this proposal will shape the future of THORChain and its lending ecosystem.
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