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THORChain deactivates non-native tokens, causing RUNE to increase by

THORChain deactivate

THORChain deactivates non-native tokens, 

causing RUNE to increase by 18%

The killswitch that gradually reduces support for the BEP-2 and ERC-20-based versions of the RUNE token has now been turned on by THORChain.

Following the long-awaited launch of THORChain's mainnet late last month, BNB.RUNE and ETH.RUNE, commonly known as IOU Tokens, are being replaced by the updated and entirely native RUNE token.

In order to promote acceptance of its completely unified RUNE form and enable greater asset interoperability, the project will gradually devalue these tokens over the following 12 months.

Users who have IOU Tokens on centralized exchanges will instantly receive the new native RUNE tokens. Those who store their tokens in personal wallets must first build a new wallet that is compatible with THORChain, after which they must click an upgrade button to move over.

On July 18, the THORChain team announced via Twitter that killswitch will launch at block 6500000 and that over the course of the following 12 months, 1:1 exchange rates will gradually decline to 1:0 as the IOU Tokens lose all of their value.

Since it brought attention to the problems of having IOU RUNE scattered across two different networks, the team had earlier this year announced in a blog post that this move was a step toward more decentralization of its network.

THORChain is very stringent about having no dependencies on third parties and prefers to handle everything internally. There are no oracles, offshore security, or dependencies on outside liquidity.”

“However, the "mint" function of the state machine is only accessible to BNB.RUNE and ETH.RUNE.” The blog post stated that “this would make THORChain's status dependent on these two networks and allow anybody presenting these tokens to create new RUNE.”

The move from THORChain was timed to coincide with a substantial 17 percent increase in RUNE, values to $2.65 in the last 24hrs. According to data from CoinGabbar, the results of measuring over a longer time horizon are likewise encouraging, with RUNE rising 69.9 percent over the past 30 days. RUNE, however, is still down 87.5 percent from its record high of $20.87 on May 19 of last year.

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