THORChain plans to resolve a $200 million debt crisis by issuing equity tokens TCY

ChainCatcher news, according to The Block, THORChain governance proposal No. 6 has been approved by a majority of validators, aimed at addressing the platform's nearly $200 million debt crisis. According to the proposal, THORChain will convert the defaulted debt into equity by issuing equity tokens TCY (Thorchain Yield).

The total supply of TCY is 200 million tokens, distributed to creditors at a rate of 1 TCY = 1 USD, with holders permanently enjoying 10% of THORChain's revenue sharing rights. To ensure the liquidity of TCY, the core team will draw $5 million from the treasury to establish a RUNE/TCY liquidity pool at a price of $0.1 per token, with initial liquidity of $500,000.

Previously, due to uncertain financial conditions, THORChain suspended THORFi services, including "savings and lending," on January 23 and initiated a 90-day restructuring plan.