Altcoin Team Offers Solution for $200 Million Debt Crisis: Here are the Details - Coin Bulletin

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THORChain took an important step to solve its $200 million debt crisis.

The new proposal approved by the governance body includes the conversion of unpaid debts to a stock-like new token (TCY – Thorchain Yield). This move will allow debt holders to have a stake in the ecosystem instead of receiving repayment in BTC or ETH.

THORChain, which suspended its THORFi services on January 23, has activated a 90-day restructuring plan to resolve the debt crisis. The majority of validators participating in the vote approved Proposal 6, giving their approval for the debt to be resolved using this new method.

200 Million TCY Tokens Will Be Released

According to the plan approved by the community, 200 million TCY tokens will be generated, and 1 TCY token will be given to debt holders for every 1 dollar of debt. TCY holders will have the right to permanently share 10% of THORChain's revenues.

The THORChain team plans to create a RUNE/TCY liquidity pool for TCY. This pool will provide $500,000 in liquidity at a price of $0.1, and $5 million in funds will be allocated from the treasury for this transaction. However, it remains uncertain how long it will take for investors to recover their assets.

This decision has caused a great stir in the THORChain ecosystem. Creditors will no longer be able to reclaim their assets as Bitcoin or Ethereum, but will have a new investment instrument tied to THORChain’s long-term revenue model.

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