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.@solana is live on THORChain!
Progressive rollout, so expect your favourite frontends to turn on Solana support soon.
Pools are still being bootstrapped, execute smaller swaps to start with while liquidity deepens.
The biggest Bitcoin DEX is now connected to Solana's massive on chain ecosystem ⚡️
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Today, @THORChain was upgraded to version 3.3.0, clearing the final remaining technical hurdle for launching @RujiraNetwork.
So, why isn't Rujira launched yet?
Before I continue I want to state that all of the information in this post is extracted from the X space run by @jpthor earlier today. I'll post the link in a reply to this post. I recommend that you take the time to listen through the recording when able.
With that out of the way, let's get back to the subject matter.
The reason Rujira isn't already launched is that even though the technical foundations are in place, the economical foundations are not.
Simply put, THORChain is constructed in such a way that its Nodes are required to bond $2 worth of $RUNE for every $1 worth of non-$RUNE TVL.
This 2:1 ratio has the purpose of protecting the network. Let's say there is $100M of $RUNE bonded by 100 Nodes. That means a cap of $50M of non-$RUNE assets.
If 66 % of the nodes agree, they can do basically whatever they want with THORChain. In our example that's 66 nodes. But if it's to make any sense to misbehave, they have to have something to gain.
In our example, let's assume each Node has $1M bonded. This means that to steal the $50M of non-$RUNE assets, these Nodes would loose $66M.
Hardly the heist of the century. 😅
With the 2:1 cap in place, there is no incentive for the Nodes to misbehave. It's simply more lucrative for them to do their job and earn fees.
So, what's the problem, then?
The problem is that quite a few Nodes left THORChain during the THORFi crisis this winter. This means the network is currently underbonded.
This leads to the unfortunate situation where Rujira, if launched, will have no headroom to mint the Secured Assets it needs to function.
What's the solution, then?
There are several possibilities.
More new Nodes, and/or more Bond Providers to existing nodes, would raise the security cap and allow for Secured Assets to be minted.
(If you can help in this regard, get in touch with a Node Operator like @therunetard, @AutoStakeThor or @KentonC137. Don't think that you're too small to make a difference. Bonds of 1000 $RUNE and lower have been accepted in the past.)
Another possible solution is to relax the security ratio, for example to 1.5:1, or remove it completely. Some variant or other of this solution has been suggested by notable figures like @jpthor, @AaluxxMyth and @PostTenebras2, amongst others.
So, where do I stand myself?
I think increasing the bond is important in any scenario, and should be a focus area as we move forward.
I also think that relaxing the security cap to a sensible level is also the way to go to get the Rujira ball rolling.
Others, like the ones I mentioned above, have already made better arguments for this than I ever could. I'll try to link some of the relevant posts below.
Whatever happens, I hope a solution will be found soon so Rujira can launch and start generating traffic. 👍
Onwards! 😎🔥🔥
$FOLKS
To @FolksFinance community,
we are working hard for TGE, we want it to be the best in class so we want to hear your thoughts. What are some successful TGEs you were impressed with? What are good ideas or innovations?
Comment below. We will reward interesting ideas.