Emission Schedule
Describes the Emission Schedule from the Reserve to Nodes and Liquidity providers.
Last updated
Describes the Emission Schedule from the Reserve to Nodes and Liquidity providers.
Last updated
There are a maximum of 500M RUNE. All 100% was created at genesis and distributed via different mechanisms:
In return for capital: 5% (SEED) and 16% (IDO) were sold for capital to start the network and give it value. They took on risk to support the network.
In return for time and effort: 10% was allocated to a group of devs who worked since 2018. They took on risk to deliver the network.
In return for bootstrap participation: 24% was given to users who participated in the bootstrapping of the network.
In return for through-life participation: 44% has been placed in the Protocol Reserve to pay out to Nodes and LPs for the next 10+ years.
All vesting has been completed.
The and other modules can be viewed .
Block rewards are calculated as such:
So if the reserve has 180m rune, a single block will emit ~4.28 Rune from the reserve, which means half of that is awarded to the node operators. The rest is paid to liquidity providers.
The exact distribution between node operators and liquidity providers (and therefore savers) is controlled by the .
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.
Native Transaction Fee: The Native THORChain transaction fee (0.02 RUNE) applies to transactions made on the THORChain blockchain for assets such as RUNE, Synthetic Assets, and Secure Assets. This fee represents the cost for processing transactions on the THORChain blockchain and is charged independently of any outbound transactions. Unlike outbound fees, which are applied to external-chain transactions, the Native Transaction Fee only applies to transactions made on the THORChain blockchain itself.
Outbound Fees: Fees collected from all outbound transactions to users, which vary depending on the asset type:
Native Outbound Transaction Fee: A fixed 0.02 RUNE is charged on RUNE and other native asset outbound transactions. This is the THORChain network native transaction fee covering the costs for processing the native outbound transaction on the THORChain blockchain and not an additional outbound fee.
Withdrawal of Reserve POL: Occurs when a RUNEPool addition replaces Reserve-backed POL or when a POL requirement is reduced.
Slashing Income: Derived from node bond slashes, particularly for failures during keygen or other operational breaches.
Gas Reimbursement:
Churn Gas Reimbursements: Covers migration gas costs during vault churns. These costs are reimbursed by the Reserve and factored into the ongoing adjustments of outbound fees to maintain a balance.
Non-Churn Gas Reimbursements: Reimburses gas costs for external-chain transactions (e.g., user-initiated outbound transactions). Over time, the total outbound fees collected for a given coin (including adjustments for surplus) are designed to equal the total gas reimbursements for that coin, which include both user-initiated transactions and churn migration costs. This reimbursement mechanism ensures that inflows from outbound fees balance the Reserve's gas reimbursement outflows on average, maintaining sustainability without accumulating an ongoing surplus.
Reserve Adding to POL: Occurs when there isn’t enough undeployed RUNE in RUNEPool to cover a withdrawal, requiring the Reserve to add RUNE to meet POL requirements. If sufficient undeployed RUNE is available in RUNEPool, no Reserve contribution is needed.
Block Rewards: Paid out to incentivise node operators and liquidity providers.
The Reserve balance is minimally impacted by gas reimbursements and outbound fees as these inflows and outflows are generally balanced over time.
POL funding prioritises RUNEPool, with the Reserve only stepping in as a fallback when RUNEPool cannot meet the need.
System income (e.g., fees from swaps) is immediately distributed to developers, burns, pools, and nodes, rather than being retained by the Reserve.
Note: The is currently set to 10, meaning block rewards are next to 0 per block.
Layer 1 Outbound Fee: For external-chain assets (e.g., Bitcoin, Ethereum), this fee bundles the external-chain gas cost, gas pool swap fee, and THORChain network fee into a single charge. The overall fee is determined by the L1 gas rate and the for the respective chain.
Staged Pool Costs: Deduction from the stage pool to cover churn-related costs for the staged pools. These costs are determined by a Mimir-adjustable network variable .