Categories: Bitcoin Latest News

THORChain to Issue Equity Tokens to Battle $200M Debt After Pausing Bitcoin, Ether Lending

THORChain’s members passed “Proposal6” to convert nearly $200 million of unserviceable debt into equity via a new token, TCY (Thorchain Yield), with a total supply of 200 million tokens.

This action was taken after suspending THORFi services on Jan. 23 due to financial uncertainties, as CoinDesk reported.

TCY tokens will be distributed at a rate of 1 TCY per dollar of defaulted debt, turning lenders and savers into equity holders. THORChain plans to establish a RUNE/TCY liquidity pool with $500,000 starting at $0.1 per TCY, funded by $5 million from the treasury.

Holders of TCY will receive 10% of THORChain’s revenue indefinitely, providing a long-term incentive and recovery mechanism for those affected by the debt crisis — although the timeline for total financial recovery remains uncertain.

THORChain’s cross-chain swaps, its main service, remain unaffected. Prices of the platform’s native RUNE are down 10% in the past 24 hours alongside a broader market fall, extending 30-day losses to nearly 50%.

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