Million

THORChain

THORChain’s governing body has approved a landmark proposal that converts defaulted debt into equity tokens as part of its restructuring efforts to resolve its debt crisis.
<h2 id="thorchain-plans-to-overcome-200-million-debt-crisis-by-issuing-tcy-stock-tokens">THORChain Plans to Overcome $200 Million Debt Crisis by Issuing TCY Stock Tokens</h2>
The majority of THORChain’s validators have accepted governance proposal 6, demonstrating community consensus on how to deal with the nearly $200 million debt crisis that has arisen in the protocol.
THORChain has suspended THORFi services, including its “Savings and Lending” programs, due to financial uncertainties. A 90-day restructuring plan is in place to address and mitigate issues resulting from unserviceable debts accumulating in these programs.
The plan, approved by the community, is to convert debt into equity, specifically a new token called TCY (Thorchain Yield) with a supply of 200 million.
This means that instead of repaying loans in bitcoin or ether, lenders and savers will receive TCY tokens, effectively converting their loan requests into equity within the Thorchain ecosystem.
TCY holders will be entitled to receive 10% of Thorchain’s revenue forever. “THORChain will convert $200 million worth of debt into equity through a new token that will receive 10% of the network revenue in perpetuity,” the THORChain team said.
The proposal involves minting 200 million TCY tokens, distributed at a rate of 1 TCY for every dollar of defaulted debt. The core team is expected to create a RUNE/TCY liquidity pool with $500,000 in liquidity at $0.1 per TCY, funded by $5 million from the treasury.
This means that for those with money in Thorchain’s lending and savings programs (ThorFi), their assets will be converted to TCY rather than being paid back in the original asset, although it remains unclear how long the recovery will take.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/a-200-million-move-from-the-project-that-experienced-a-huge-price-drop-due-to-the-debt-crisis-here-are-the-details/" rel="noopener noreferrer nofollow">A $200 Million Move from the Project That Experienced a Huge Price Drop Due to the Debt Crisis! Here Are the Details</a>

A $200 Million Move from the Project That Experienced a Huge Price Drop Due to the Debt Crisis! Here Are the Details

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