RUNE token: What It Is, How It Works, and Why It Matters in DeFi

When you hear RUNE token, the native asset of THORChain, a decentralized cross-chain liquidity network. Also known as THORChain token, it enables trustless swaps between Bitcoin, Ethereum, BNB Chain, and over 30 other blockchains without needing wrapped tokens or centralized exchanges.

RUNE isn’t just another crypto token—it’s the fuel that keeps THORChain running. Every time someone swaps BTC for ETH directly on THORChain, RUNE is used to secure the network through liquidity pools and to pay node operators who validate transactions. Unlike centralized exchanges that hold your crypto, THORChain uses a network of independent nodes that lock up RUNE as collateral to guarantee safety. If a node tries to cheat, it loses its RUNE. This system makes it one of the few DeFi protocols where you never give up control of your assets—even during a swap.

THORChain’s design solves a real problem: most cross-chain bridges rely on third parties, which have been hacked for billions in losses. RUNE removes that risk by using a consensus mechanism called Byzantine Fault Tolerance, where nodes must agree on every transaction. It’s not fast like a centralized exchange, but it’s far more secure. And because it’s built for liquidity, not just trading, RUNE holders can earn rewards by adding their tokens to liquidity pools—earning fees from every swap that happens.

The RUNE token also powers governance. People who hold RUNE can vote on upgrades, fee changes, and which new blockchains get added to the network. That means the community, not a company, decides its future. This is why RUNE stands out: it’s not just a currency, it’s the backbone of a decentralized infrastructure that lets users move crypto freely between chains without permission.

You’ll find posts here that dig into how RUNE compares to other DeFi tokens, what happens when liquidity pools get imbalanced, and why some traders use it as a hedge against volatile altcoins. Others explain how to stake RUNE, what fees to expect, and why it’s often overlooked despite its technical strength. Some even warn about scams pretending to be THORChain—because if you’re using RUNE, you need to know where the real platform ends and the fakes begin.