THORChain suggests incinerating $300 million worth of RUNE tokens.
The developers behind THORChain have recently introduced a community proposal aimed at improving lending activity by burning approximately $300 million worth of RUNE tokens.
In a community proposal released on January 30th, the THORChain developers suggested burning 60 million RUNE tokens from the Standby Reserve fund. This amount is equivalent to 12% of the maximum supply of RUNE tokens and currently valued at around $300 million. The main objective of this move, as described in the proposal, is to create more space for loans on the THORChain platform.
One of the THORChain developers, who goes by the alias @Pluto9r, expressed their belief that this proposal gives the project a genuine opportunity to become the leading BTC pool in the world. They urged the community to support the proposal and contribute to its success.
However, despite the optimistic outlook, some members of the THORChain community have raised concerns about the potential consequences of the proposal. While some are worried about how burning such a significant amount of RUNE tokens would actually enhance lending capacity, others have hesitated to support a lending model that relies on an assumption.
In response to these concerns, THORChain has justified the burning of 60 million tokens by stating that it would ultimately increase the value of all existing RUNE tokens. This assertion has sparked ongoing discussions within the THORChain community as participants carefully evaluate the potential benefits and risks associated with the suggested token burning.
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