Hello!
Today the official Thorchain account published the following tweet:
THORChain nodes voted to remove block rewards 🔥From 25,000 $RUNE per day emitted from the Reserve down to 2 per day, eliminating inflation completely100% of income is now from swap fees, with a deflationary burn of 5% system income
And with this photo:
What are the implications of this change in the tokenomics?
Well, after all the Thorchain drama and the liabilities that ThorFI created, the community agreed to make the following changes. First, they will create a token called TCY that will take 10% of the fees generated from the swaps in the platform and distribute them among the holders. Not sure if it will be via buying back TCY or other methods, but this is the idea.
The other big change that has been proposed and voted by the node operators is to stop Block Rewards. But, why? Because it was the main source of inflation for RUNE. The Liquidity Providers were second class citizens. They were providing liquidity, suffering impermament loss and also they were not getting the majority of the fees from the swaps.
It was mandatory to change this if they want the protocol to survive. Simplify the strategy. Just be the best protocol at decentralized swaps. Give the Liquidity providers a fair share and stop inflating the Rune token.
Happy to see all of this finally materialize!
Posted Using INLEO
Esto es bueno para la salud de Thorchain a largo plazo, fuerza a que las ganancias vengan de los swaps y no de la inflacion... me alegro haber comprado en 1.20 hace una semana jajaja
Por cierto amigo, te envie un mensaje de discord, sera que lo podras ver?
Lo miro!