THORChain 101: The basics before using RUNEBond
Before diving into RUNEBond, it’s important to understand a few core concepts about THORChain, the network it’s built on.
What is THORChain?
THORChain is a blockchain designed for decentralized cross-chain swaps (e.g., Bitcoin ↔ Ethereum) without relying on centralized exchanges. Its native token is RUNE, which powers the network: it’s used for liquidity, security, and governance.
What is a Node Operator?
The network is secured by Node Operators individuals or organizations running validator nodes. To participate, each operator must deposit a certain amount of bonded RUNE. This bond acts as collateral to ensure honest behavior.
What is bonding?
Bonding means locking RUNE as collateral to secure the network.
If the node behaves correctly → it keeps its bond and earns rewards.
If the node misbehaves → part of its bond gets slashed (burned), penalizing the operator.
What are Bond Providers?
Bond Providers are users who want to delegate their RUNE to a Node Operator, helping them reach the required bond size. In return, they receive a proportional share of that node’s rewards. However, unlike other networks where delegation is open to anyone by default, in THORChain delegation is permissioned:
A Node Operator must first accept you as a Bond Provider.
This design is intentional, to ensure operators maintain full control over who is helping secure their node and to prevent unknown, potentially malicious delegations.
What is the validator set?
Only a limited number of nodes can be active at any given time. This group is called the validator set. Operators compete to enter and remain in it.
What does “churn” mean?
Churn is the process of rotating nodes: some enter the validator set, while others exit. When a node is churned out, its bond (and that of its bond providers) becomes eligible for withdrawal.
Quick recap
RUNE = THORChain’s native token.
Node Operators = validators who secure the network by bonding RUNE.
Bond = locked RUNE at risk of being slashed.
Bond Providers = users who delegate RUNE to operators and share rewards.
Validator Set = the limited group of active nodes at any moment.
Churn = rotation process of nodes in/out of the validator set.
With these basics in mind, you’ll have the context needed to understand how RUNEBond works and what role you can play as either a user or a Node Operator.
Last updated