Introduction

THORChain is a settlement layer that facilitates swaps between 8 chains: Bitcoin, Ethereum, Binance Chain, Avalanche, CosmosHub, Dogecoin, Litecoin, and Bitcoin Cash.

THORChain is secured by its native token, RUNE, which deterministically accrues value as more assets are deposited into the network.

Anyone can use THORChain to swap native assets between any supported chains or deposit their assets to earn yield from swaps.

What is a Node?

Node (cryptocurrency network) – definition and examples. A node, in the world of digital currency, is a computer that connects to a cryptocurrency network. The node or computer supports the network. It supports it through validation and relaying transactions

What are block rewards?

Each Thorchain block RUNE is given to the Liquidity providers and the validators, this RUNE distribution is the block reward. The emission curve is designed to start at around 30% APR and target 2% after 10 years. At that point, the majority of the revenue will come from fees.

Objective

Swap/economics: How much swap volume does THORChain need to offset emissions? (maybe a tool?)

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E.g if we 10x swap volume, the current block emissions can be offset by the additional fees generated from the swaps.

Observation

• There has been a total of 12.34 Billion worth of swaps
• 18 Million USD were generated as fees.
• In the last 5 months, close to 25 Million USD was generated in volume each day

Rewards

Observation

A total of 90 million usd were given out in rewards, far higher than fees generated.

Comparing volume,fee and rewards

Observation

• all 3 of them peaked on august 9.
• While the fees appears to have been constant for the last few weeks, the rewards have been declining.

Conclusion

• There has been a total of 12.34 Billion worth of swaps
• 18 Million USD were generated as fees.
• In the last 5 months, close to 25 Million USD was generated in volume each day
• A total of 90 million usd were given out in rewards, far higher than fees generated.
• all 3 of them peaked on august 9.
• While the fees appears to have been constant for the last few weeks, the rewards have been declining.
• The swap volume should be atleast 7 time greater so that the current block emissions can be offset by the additional fees generated from the swaps.

Observation

• The swap volume should be atleast 7 time greater so that the current block emissions can be offset by the additional fees generated from the swaps.