I’ve gathered the key insights from today’s discussion on the $KUJI and $RUJI merge.
JP essentially acquired Kujira for $2.6m to serve as an applayer for TC. I’ve written earlier that the setup feels a bit rushed… Now I feel more like tye $KUJI team is abandoning Kujira to build Rujira for JP.
Do you agree? Please read it and drop me a comment below. Would love to hear your thoughts on all of this.
If you want to listen to the space, please find it here: https://x.com/jpthor/status/1833097943575859411?s=46&t=3efUAcmjTuHABjWpQOgqxQ
The Kujira team will take charge of building the app layer for THORChain. It’s important to note that this app layer is separate from the Kujira blockchain, which will continue to operate. The $RUJI token will represent the new chain, and tokens like $KUJI, $FUZN, $WINK, and $NSTK will merge into $RUJI, with the possibility of $LVN joining in the future.
The team is aiming to create a structured, DeFi-first Layer 1, similar to Terra, where one wallet and a unified ecosystem fund provide a seamless experience. The merge into $RUJI is completely voluntary—if you prefer to keep staking or using your tokens on Kujira, that’s fine. There’s no obligation to merge.
The expectation is that $RUJI will eventually surpass $KUJI in value. If the Levana team comes on board, their focus will be on developing a perpetual DEX, which could bring in significant trading volume. Additionally, a $10M raise is planned to support the ecosystem for 4-5 years, providing long-term stability for builders.
This merge brings together skills and networks that go beyond what Kujira could offer on its own, unlocking new opportunities. Teams will be incentivized to generate as much revenue as possible for $RUJI stakers, and there’s even a budget available for further merges. JP’s team will handle day-to-day management, while developers focus on building.
Not all merged Kujira applications will launch simultaneously—order books will likely be the first, with more apps coming in the following months. The entire merge process will take about twelve months. Unclaimed $RUJI tokens will be redistributed to participants, potentially offering an additional 10-20% $RUJI.
Kujira applications will share fees with the base layer, a significant improvement over many other chains. If executed well, this could make THORChain a major player in DeFi. Multiple teams will work on various products under a single brand, with $RUJI benefiting from fees generated across the ecosystem.
The combination of THORChain’s liquidity and Kujira’s user experience could give it a competitive edge over Solana, particularly in making DeFi accessible to a broader audience. Initially, priority will be given to applications involved in the merge. Once everything stabilizes, which could take 6-12 months, the chain will transition to being permissionless.
Personally, I am not entirely sure on this set up. That it will compete with Solana is an incredibly bold statement too.
Time will tell.
If I’ve missed or misunderstood any points, feel free to share your thoughts!
Photo source: https://x.com/wagmiglobal_/status/1832015898153992266?s=46&t=3efUAcmjTuHABjWpQOgqxQ Show Less
4
