Lancelot ⚡️

[Lancelot ⚡️ @RuneMaxi]

@TreefeedXavier @THORChain Lately it mostly licks its balls.

[Lancelot ⚡️ @RuneMaxi]

@KimDotcom Consider that we would be in the Stone Age without jews, for good and bad.

[Lancelot ⚡️ @RuneMaxi]

@flowith So, is it so very "alpha" version that you are giving away 5 codes for 30k community 😅?

[Lancelot ⚡️ @RuneMaxi]

@ethereumJoseph Does metamask with a connected ledger counted? Or only the metamask app?

[Lancelot ⚡️ @RuneMaxi]

@THORChain Thorchain needs rebranding.

[Lancelot ⚡️ @RuneMaxi]

This isn't "accumulation," it's damage control. Finally proposing marketing? 2 years too late, just like everything else. Community begged for marketing years ago. Now after $200M insolvency suddenly it's priority #1? Classic THORChain. No amount of SEO and press releases fixes broken tokenomics and destroyed trust. Still just Runetards praying for Valhalla while smart money stays away. Pathetic timing, as always..

[Lancelot ⚡️ @RuneMaxi]

Shouldn't the node operators stay anonymous for obvious reasons? 🤔

[THORChain @THORChain]

💡Community Spotlight #2: THE BONDSMITH

We're back again in our new series, shining a light on the people who help empower @THORChain

⚡️ Every week, we're reaching out to interview standout contributors and our 2nd guest is $RUNE Fund Manager and THORChain Veteran @KentonC137

Throw this one some love, Chads. It's well-deserved because he has a lot of insight to offer.

[Lancelot ⚡️ @RuneMaxi]

Optimistic security is not "no security", but it might not be enough to safeguard the @THORChain network.

If removing the strictBondLiquidityRatio allows nodes to take more from the network than they have bonded, that’s a massive risk.

And if nodes have the opportunity to exploit the network and steal funds, they eventually will.

[Lancelot ⚡️ @RuneMaxi]

You mean "Decentralized Finance", not "Decentralized Binance" 😆

[Lancelot ⚡️ @RuneMaxi]

If you have an X account, you can claim an airdrop. Account age and number of followers dictate the size of your airdrop.

https://t.co/RJXlPGAzeR

[Lancelot ⚡️ @RuneMaxi]

@jpthor Hey JP, please address this:
I made a transfer of $100k to you and received confirmation, but I never heard back from you since then. You didn't even bother to answer my DM.

[Lancelot ⚡️ @RuneMaxi]

Let’s get one thing clear: @THORChain doesn’t hide anything—every swap is fully traceable, every single coin. Ethereum itself isn’t halting these bad actors, so why should THORChain, which is equally decentralized, shut down or censor?
You don’t blame a highway for bank robbers using it; THORChain is simply an open network, not a laundering service

[Tay 💖 @tayvano_]

eXch just threw @THORChain under the fucking bus omg lollll 💀

is v funny bc eXch relies on Thorchain whenever they run out of liquidity.

In the last 2 days, eXch has laundered more than 29,000 ETH that was stolen from Bybit by Lazarus.

[Lancelot ⚡️ @RuneMaxi]

It seems we're about to seriously undermine @Thorchain.

The recent removal of block rewards, instead of encouraging RUNE holding for income, attempts to create deflation to counter sell pressure. Yet we forget that this pressure isn't from reward cashouts, but mainly from disappointed holders selling their bags.

The incentive pendulum currently sits at 56% for nodes, with $RUNE priced at $1.30. Nodes earn approximately 140 RUNE per day (around $5,600 per month). Node Operators managing others' RUNE make about $1,100 per month per node with a 20% revenue share.

As the price of $RUNE (hopefully) rises, the pendulum will further suppress node income.
So the system is likely to overshoot the projected 4-5% yearly APY, probably dropping to around 2-3%.
I wonder if panic will start among Node Operators.

Even more concerning is that these reduced returns make LP profitability nearly impossible. They were already underwater, and now recovery looks even harder.

Instead of fostering growth, it appears we are burying the system even deeper.

[Lancelot ⚡️ @RuneMaxi]

I expect a significant demand for $TCY token once it's out, the starting point of $0.1 per token seems like a steal.

I'm pretty sure the price will increase sharply - it's an interesting opportunity , as TCY represents ~$200mln debt but has unlimited upside from ongoing protocol revenue (10% forever, no cap). $RUNE

[Lancelot ⚡️ @RuneMaxi]

Despite the challenges in the @THORChain network, there are strong odds of overcoming them. As new connections ( $SOL, $Tron, etc.) emerge, @RujiraNetwork is set to introduce ultimate finance instruments that will upgrade and leverage the Thorchain ecosystem.

Those who believe now have a second chance— $RUNE around $1 won't last long! These are the best times to get a node if your finances allow.

[Lancelot ⚡️ @RuneMaxi]

The incentive pendulum currently sits at 53% for nodes, yielding an 8% APY at today’s prices. With RUNE at $4, I estimate the pendulum will drop to around 30% for nodes, reducing operators' APY to about 4-5%.
If "liquidity nodes" from Prop6 are introduced, we may face challenges; LP bonds competing with RUNE bonds could pressure node operators to sell their RUNE, as it may no longer be worth "holding" for them.

[Lancelot ⚡️ @RuneMaxi]

Nodes are currently earning approximately 220 RUNE/day for every 1 mln RUNE deposited. If a node operator is managing other users' RUNE rather than their own, the average return of 20% (typical for THORChain) at today’s price translates to around $1,800.
This poses a significant challenge for those using cloud services, as the operational costs approach $4,000. In contrast, node operators running their own hardware are in a better position due to lower costs.
It seems likely that there are no operators left running nodes for others in cloud services, given these financial pressures.

[Lancelot ⚡️ @RuneMaxi]

It's concerning to believe that eliminating rewards will resolve the underlying issues.

Nodes are selling around 6% of their income, while liquidity providers (LPs) are largely facing significant losses, leaving them with little to sell.

Instead of addressing the root problems, it seems we're simply stripping away the last incentive that attracts participation. 🤦

[THORChain @THORChain]

THORChain nodes voted to remove block rewards 🔥

From 25,000 $RUNE per day emitted from the Reserve down to 2 per day, eliminating inflation completely

100% of income is now from swap fees, with a deflationary burn of 5% system income

[Lancelot ⚡️ @RuneMaxi]

So you're saying the ~30k $RUNE daily rewards are holding back the price? Even if fully sold (let's say 30% nodes, 70% LPs with $RUNE above $4), do you really think that amount suppresses the price? ETH prints ~$5M/day, SOL ~$16M/day, while $RUNE, at $4, prints ~$120k/day!
Just look at the holder counts for these three networks. No way THORChain enters the top 10 market cap with its current numbers.

@jpthor's anti-marketing mania didn't work. See WEWE's launch – the "expend effect" fizzled when participation dried up.

@THORChain did $1B in January, yet $RUNE holders haven't grown much in years. The problem? $RUNE is hidden behind interfaces. Most users don't know they're using TC.
$RUNE remains niche with a closed community, and it will stay that way if nothing changes. JP thought deflation via increased burn (like Solana, which burns ~50%) was the key. You're going in a different direction, but if you want to reduce supply, THORChain needs another mechanism to drive the price up.

9R gets 5% of revenue. Why not allocate an extra 1-3% to a good PR firm? Review performance in a few months and replace if needed.

[Lancelot ⚡️ @RuneMaxi]

So you're saying the ~30k $RUNE daily rewards are holding back the price? Even if fully sold (let's say 30% nodes, 70% LPs with $RUNE above $4), do you really think that amount suppresses the price? ETH prints ~$5M/day, SOL ~$16M/day, while $RUNE, at $4, prints ~$120k/day!
Just look at the holder counts for these three networks. No way THORChain enters the top 10 market cap with its current numbers.

@jpthor's anti-marketing mania didn't work. See WEWE's launch – the "expend effect" fizzled when participation dried up.

@THORChain did $1B in January, yet $RUNE holders haven't grown much in years. The problem? $RUNE is hidden behind interfaces. Most users don't know they're using TC.
$RUNE remains niche with a closed community, and it will stay that way if nothing changes. JP thought deflation via increased burn (like Solana, which burns ~50%) was the key. You're going in a different direction, but if you want to reduce supply, THORChain needs another mechanism to drive the price up.

9R gets 5% of revenue. Why not allocate an extra 1-3% to a good PR firm? Review performance in a few months and replace if needed.

[Lancelot ⚡️ @RuneMaxi]

Very questionable move
80%+ of the "dump" volume comes from interfaces, not node operators.
Ledger accounts for 30%+ of the TC volume, charging 1.5%, but doesn't hold those Rune; they sell. TC gets about 0.05% from their transactions. Introducing Liquid Nodes and lowering block rewards simultaneously might not be wise, as nodes could start selling with increased competition from LPs ready to stake for smaller rewards.

At $4 per $Rune, node operators earned about 100 Rune daily. Lowering rewards by 80% reduces this to about 60 Rune daily. Nodes holding about 1 million Rune won't be happy, while LPs will be pleased, gaining an additional Rune per day if they add their LP into nodes. We might end up with half of Nodes' Rune, about 100 million $Rune, being replaced with LP, leading to potential sell pressure from 100 million Rune in Nodes.

[Aaluxx⚡️🍫🛡️ @AaluxxMyth]

I think we will be able to lower block rewards by 80%, neutralize its $RUNE sell pressure entirely and do so sustainably for the benefit of both DLPs & Nodes. Expect Proposal 6 implementation plan next week with this and more details! @Orion_9R and I will keep doing the math ⚡️