RUNE Distribution Update

2019-11-26 — 3 min read

Report

Overview

RUNE is the liquidity and security of the THORChain network. Prior to the launch of mainnet, the RUNE token must be distributed as widely as possible to as many aligned individuals as possible, in the fairest manner possible.

The following are the current distribution mechanics:

The original Seed sale
The Binance DEX public IDO
RUNEVault Staking Program
Operational Expenses to team, admins, managers
Team allocation

Holders

There are now 2242 Rune Holders, with 535 engaged with RUNEVault.

The Top 100 have increased their ownership of the network by 6% (74% to 80%). With 2242 holders, the Top 100 represent around 5% of the network, so this distribution is not yet Pareto-ideal. Ideally The Top 448 (20%) own 80% of the network.

THORNodes

With a design for 99 nodes, ideally the Top 99 own no more than 67% of the network.

There are currently 25 THORNode candidates, who can run a maximum of 44 THORNodes. They own 41% of the network.

If all THORNode Candidates bonded, the network could handle up to $4m in staked assets on launch (with the current value of Rune at 5c).

Since the network launches with 12 slots and adds a new node each 3 days, it will reach capacity after 4 months. If no more individuals bonded, then it will be 39% more profitable to run a node than to stake as a liquidity provider.

The network can safely handle more than the target amount of 33% of circulating Rune.

Considerations:

The following are points for the community to consider:

The Top 100 currently hold too much RUNE (80%) when they should be holding no more than 67%.

The current THORNode candidates can safely support the design goal of 33% of staked Rune.

It will be 39% more profitable to run a Node than to stake if no more individuals acquired sufficient Rune to bond.

Team and Seed investors (who will have 15.2m RUNE unlocked on Mainnet) will assist in increasing Node count and widening distribution.

Summary

RUNE is still in its distribution phase. The current metrics are sufficient, but the community should assist the project in increasing the distribution of the asset. There is still time prior to main-net to target the distribution goals of the project (99 holders with 67% of the supply). Rune distributed to Team and Seed investors at mainnet will improve metrics by increasing Node count and widening distribution.