YEREVAN (CoinChapter.com) — THORChain’s governance approved a plan to address its $200 million debt crisis by issuing TCY equity tokens instead of repaying creditors in Bitcoin or Ethereum. The proposal, known as Proposal 6, received majority support from THORChain validators, signaling consensus on the restructuring plan.

On Jan. 23, THORChain suspended ThorFi services, including Savers and Lending, due to financial concerns. The governance-approved plan includes a 90-day restructuring period aimed at stabilizing the network.
TCY Token Holders to Get 10% of THORChain’s Revenue
Under the new structure, THORChain will issue 200 million TCY tokens, with each token representing one dollar of defaulted debt. Instead of repaying loans in their original assets, THORChain will distribute TCY to creditors, effectively converting debt into equity.
TCY holders will receive 10% of THORChain’s revenue in perpetuity, according to the governance plan.
“THORChain will convert ~$200M of debt into equity through a new token that will receive 10% of network revenue in perpetuity,”
the THORChain team stated.
THORChain Treasury Allocates $5M to TCY Liquidity Pool
The restructuring plan includes creating a RUNE/TCY liquidity pool with $500,000 in liquidity at an initial price of $0.1 per TCY. This liquidity is backed by $5 million from THORChain’s treasury, ensuring TCY has a trading market.
Lenders and savers who had funds locked in the protocol will now hold TCY tokens instead of Bitcoin, Ethereum, or other assets. The governance proposal does not specify how long it may take for TCY holders to recover value from their holdings.
RUNE Price Drops 35% Following Debt Restructuring Announcement
Despite the governance approval and restructuring plan, RUNE price declined by 35% over the past week, dropping from $2 to $1.3. The token has lost over 70% of its value in the last 30 days, following broader declines in the altcoin market.

THORChain’s network, however, continues to process transactions, recording $270 million in swap volume over the last 24 hours. The restructuring plan aims to manage financial challenges while maintaining network operations.
What is THORChain Network?
THORChain network is a decentralized exchange (DEX) that allows users to trade cryptocurrencies across different blockchains without relying on centralized platforms or wrapped tokens. It uses liquidity pools funded by users who deposit assets and earn rewards through trading fees. The network’s native token, RUNE, facilitates swaps and secures the platform. THORChain is fully decentralized, with node operators validating transactions and maintaining security. By enabling direct cross-chain swaps from users’ wallets, THORChain enhances security, control, and ease of trading within the decentralized finance (DeFi) ecosystem.