Economics & Tokenomics
RUNE token mechanics, fee structures, the Continuous Liquidity Pool model, and the Incentive Pendulum.
RUNE Token
Settlement Asset
All cross-chain swaps route through RUNE. BTC → RUNE → ETH. RUNE is the only asset that pairs against every external token in every liquidity pool.
Security Bond
Node operators bond RUNE to participate. Bonds range from ~300K to 2M+ RUNE. Larger bonds earn more rewards. Misbehavior results in slashing of the bond.
Governance Token
RUNE holders govern via Architecture Decision Records (ADRs). Voting power is proportional to bonded RUNE. 67% threshold required to pass.
Supply & Emission
Fee Structure
Liquidity Fee
Slip-based (dynamic)
To: LPs
Scaled by trade size relative to pool depth. Small trades pay near-zero. Large trades pay proportionally more.
Outbound Fee
Dynamic per chain
To: Reserve
Covers gas costs for outbound transactions. Varies by chain based on current network fees.
Network Fee
Flat per swap
To: Node operators
Minimum fee applied to every swap. Compensates operators for observation and signing.
Incentive Pendulum
Low Bond Ratio →
When bonded RUNE is low relative to pooled RUNE, more block rewards flow to node operators to incentivize bonding.
High Bond Ratio →
When bonded RUNE is high relative to pooled RUNE, more rewards flow to LPs to incentivize liquidity provision.
CLP Formula
Slip Fee: fee = x / (X + x) — where x is input, X is pool balance
Output Amount: y = (x · Y · X) / (x + X)² — where Y is paired asset balance