THORChain said that protocol upgrade v3.18 shipped with 51 merged requests, introducing foundations for Protocol-Owned Liquidity and the ADR-026 Dynamic Fee Model. The release frames liquidity ownership and adaptive fees as core economic upgrades for the network.
The POL reserve system can redirect a configurable portion of system income into a dedicated reserve, then deploy RUNE liquidity into selected pools under governance controls. ADR-026 adds dynamic minimum L1 slip fees, allowing THORChain to adjust fee floors around real activity and revenue instead of static assumptions.
The upgrade also lays groundwork for future Monero, TAO and DOT integrations, while adding fixes for solvency protection, vault safety, swap execution, validator operations and network stability. The next milestone is governance-led activation and testing, especially because ADR-026 ships disabled by default until progressively enabled.
Source: THORChain.
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