Understanding RUJI Token
Last updated
Last updated
RUJI is the new native token for the THORChain App Layer, born from the merger. Holders of existing tokens—KUJI, FUZN, NSTK, WINK, and LVN—can convert their tokens into RUJI. Staking RUJI allows users to earn fees generated across the App Layer, benefiting from THORChain’s high liquidity.
100M RUJI
At launch, there are no mechanisms for token inflation, and there are no plans to introduce any in the future.
RUJI will serve as the fee-switch token for the THORChain App Layer, enabling stakers to capture the revenue generated by applications that join the Rujira Alliance, after accounting for the portion shared with THORChain Base Layer to cover security costs. As outlined in the initial partnership announcement, the standard revenue split between core applications and the Base Layer is 50/50. However, any economic activity that already contributes value to the Base Layer, such as applications built on top of the Rujira primitives, will not be required to pay for security twice.
Kujira & Merged Ecosystem Apps (50%)
Levana (5%)
Ecosystem Fund (7.5%): To be used at the discretion of the Rujira team for additional mergers, liquidity mining, airdrops and other activities aimed at attracting users, builders and stimulating economic activity.
Builders Incentive Pool (7.5%): To be allocated as performance bonuses to apps, builders, and other contributors based on revenue contribution over four years, to ensure that the verticals that contribute the most value to RUJI are rewarded for it.
Operations (15%): To be used at the discretion of the Ruji team to fund operational expenses, Centralized Exchanges listings, provision Market Makers liquidity, and engage in value-added on-chain activities such as building up long-term protocol-own liquidity (e.g. to make market on the Rujira orderbook DEX via RUJI Pools).
New investors (15%): Targeting to raise at different rounds to capitalize the Operations treasury and the Ecosystem Fund. Any unsold tokens will be returned to the Operations treasury.
Holders of KUJI, FUZN, NSTK, WINK, and LVN tokens will have 12 months from the merger date to convert their tokens to RUJI. The conversion rate will start to decay after 4 weeks and will decrease linearly over the 12-month period, with early converters receiving the best rates. Key details:
Users can choose to keep their RUJI in the merger contract during the conversion period to earn additional rewards, as excess tokens will be distributed to those who delay withdrawal. Users can withdraw their RUJI at any time, but once withdrawn, they cannot deposit back into the merger contract, leading to more rewards for the ones who stay.
Starting from the merger date (expect. 27th February 2025), users will have 12 months to convert their tokens into RUJI. During the first 4 weeks, the conversion rate will be 1:1*, after which it will gradually decrease on a linear scale, reaching 1:0 by the end of the 12-month period.
The conversion rate applicable at the time a user initiates the conversion will be locked in and will not decline further, even if the user delays the withdrawal.
*Note: The conversion rate shown in the table above is considered 1:1 in instances where 1 merge token does not equate to 1 RUJI.
If not all tokens are converted, or if they are converted at less than a 1:1 ratio, there will be an accumulation of excess RUJI tokens. These excess tokens will be periodically distributed as rewards to users who choose not to withdraw their RUJI immediately.
The share of excess tokens a user earns will depend on when they initiate the conversion and how long they hold their RUJI before withdrawing. Rewards will continue to accrue until the user withdraws their tokens.
Users can withdraw both their converted and reward tokens at any time without any unbonding period, but they cannot redeposit to earn additional rewards. Partial withdrawal from the merger contract will be possible.
The Switch Handler on THORChain facilitates the migration of assets from external chains (e.g. Gaia) to THORChain’s native assets.
Originally, it enabled users to convert RUNE tokens from Binance Chain (BEP2) to native RUNE on THORChain. The process involved sending BEP2 RUNE to a designated address with a SWITCH memo, triggering the handler to mint an equivalent amount of native RUNE to the user’s THORChain address.
We have used this Switch Handler for all the Kujira and Levana tokens to migrate and become THORChain-native assets. These assets comprise two categories:
Tokens migrating and merging into $RUJI: $KUJI, $rKUJI, $FUZN, $NSTK, $WINK, $LVN
Tokens migrating but not merging: $NAMI, $AUTO, $LQDY (ex. $MNTA), $BOON
The process for switching above tokens to become THORChain-native assets:
Reinstating the Switch Handler: Removing the previous kill switch logic to allow new migrations.
Configuring On-Chain Parameters: Defining source assets, target denominations, and burn addresses in an on-chain configuration. For example for $KUJI:
source_asset: GAIA.KUJI-XXXXXXXXX
target_asset: kuji
burn_address: cosmos100000000000000000000000000000000708mjz
Executing the Switch: Users send their external assets to the THORChain GAIA.ATOM vaults, node operators validate the deposit and the network (a) mints a native token on THORChain and (b) sends the external asset on Gaia to the burn address.
Asset Purging: Transferred assets are sent to the designated burn address and removed from system accounting to prevent double-spending.
