THORChain introduces TCY to solve the $200M crisis. Users will receive tokens instead of BTC or ETH, with 10% of revenue shared.
The majority of THORChain's validators approved a proposal to resolve the approximately $200 million debt crisis by converting the protocol commitments into Thorchain Yield (TCY).
THORChain Community Update Thank you to the community members, Node Operators, and builders who have remained committed throughout this critical moment for the network. Your dedication and contributions have been invaluable in shaping the path forward and ensuring THORChain's...
In other words, instead of repaying loans in Bitcoin or Ethereum, users will start receiving new tokens.
In total, validators have evaluated eight different initiatives. Although the exact timeline and specific details are still being worked out, the basic plan calls for:
Token holders will be able to request a 10% share of THORChain's revenue in perpetuity;
Borrowers and savers will be able to receive 1 TCY for every $1 of commitment to the protocol;
The team will create a treasury-funded RUNE/TCY liquidity pool, allowing token holders to sell their requests at their discretion. When market demand for a share of THORChain's revenue is reflected in the price of the asset, holders will be able to exit on their own terms.
The project team promised to regularly update the community as details are clarified.
On 23 January, the protocol suspended THORFi services, including the Lending and Savers programmes, due to financial uncertainty.
According to the team, 31 validators have left the network in the last week and a half. The TVL in the liquidity pools has decreased by $100 million to $208 million at the time of writing, according to data from DeFi Llama.
However, the current situation has not prevented THORChain from continuing to operate: the protocol is still executing cross-chain swaps, maintaining storage and validators, producing blocks and receiving commissions.
Today, 87 nodes are active in the network. Against the backdrop of the initiative, RUNE's prices have continued to fall. In the last week, the token has plummeted 48%, while in the last month it has lost 75.9%, dropping to $1.26, according to CoinGecko.
The pressure has been exacerbated by the worsening situation in the altcoin sector in general.
A user with the nickname thecryptocanine explained this dynamic with expectations of a further exit of validators from the project. According to him, RUNE will soon drop below $1.
TCB: "If you want to give me millions to re-buy let me know, I can lose your money and have it in my wallet. There's a bunch of validators that are going to sell I'm not going to stand there like a dumbass."
"If you want to give me millions to buy back, let me know, I can lose your money and keep it in my wallet. There are many validators who will sell, I won't stand there looking like a fool," he quoted from correspondence between participants.
Remember that in October 2023, the THORSwap team temporarily put the interface into maintenance mode. The developers took this measure after repeated reports that the FTX hacker and other criminals were using DEX for illegal transactions.
Convert Commitments into TCY tokens
THORChain has taken a bold move to address the $200 million debt crisis, with validators approving a proposal to convert protocol commitments into Thorchain Yield (TCY) tokens. Instead of repaying debts in Bitcoin or Ethereum, users will now receive TCY tokens, which represent a share of THORChain's future revenue.
This plan will allow token holders to claim 10 per cent of THORChain's revenue in perpetuity, while borrowers and savers will receive 1 TCY for every $1 they commit to the protocol. A liquidity pool will also be created to allow users to sell their claims based on market demand, giving them greater flexibility.
Despite the financial uncertainty, THORChain continues to operate, with 87 active nodes supporting its cross-chain functionality. Although the value of RUNE has dropped significantly, the project remains committed to continued development and transparency with the community regarding next steps.
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The majority of THORChain's validators approved a proposal to resolve the approximately $200 million debt crisis by converting the protocol commitments into Thorchain Yield (TCY).
X
In other words, instead of repaying loans in Bitcoin or Ethereum, users will start receiving new tokens.
In total, validators have evaluated eight different initiatives. Although the exact timeline and specific details are still being worked out, the basic plan calls for:
The project team promised to regularly update the community as details are clarified.
On 23 January, the protocol suspended THORFi services, including the Lending and Savers programmes, due to financial uncertainty.
According to the team, 31 validators have left the network in the last week and a half. The TVL in the liquidity pools has decreased by $100 million to $208 million at the time of writing, according to data from DeFi Llama.
However, the current situation has not prevented THORChain from continuing to operate: the protocol is still executing cross-chain swaps, maintaining storage and validators, producing blocks and receiving commissions.
Today, 87 nodes are active in the network. Against the backdrop of the initiative, RUNE's prices have continued to fall. In the last week, the token has plummeted 48%, while in the last month it has lost 75.9%, dropping to $1.26, according to CoinGecko.
The pressure has been exacerbated by the worsening situation in the altcoin sector in general.
A user with the nickname thecryptocanine explained this dynamic with expectations of a further exit of validators from the project. According to him, RUNE will soon drop below $1.
X
"If you want to give me millions to buy back, let me know, I can lose your money and keep it in my wallet. There are many validators who will sell, I won't stand there looking like a fool," he quoted from correspondence between participants.
Remember that in October 2023, the THORSwap team temporarily put the interface into maintenance mode. The developers took this measure after repeated reports that the FTX hacker and other criminals were using DEX for illegal transactions.
Convert Commitments into TCY tokens
THORChain has taken a bold move to address the $200 million debt crisis, with validators approving a proposal to convert protocol commitments into Thorchain Yield (TCY) tokens. Instead of repaying debts in Bitcoin or Ethereum, users will now receive TCY tokens, which represent a share of THORChain's future revenue.
This plan will allow token holders to claim 10 per cent of THORChain's revenue in perpetuity, while borrowers and savers will receive 1 TCY for every $1 they commit to the protocol. A liquidity pool will also be created to allow users to sell their claims based on market demand, giving them greater flexibility.
Despite the financial uncertainty, THORChain continues to operate, with 87 active nodes supporting its cross-chain functionality. Although the value of RUNE has dropped significantly, the project remains committed to continued development and transparency with the community regarding next steps.
Sign up for Spaziocrypto®
The community for blockchain and cryptocurrency enthusiasts.
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