THORChain, a decentralized exchange (DEX) that allows users to swap cryptocurrencies across different blockchains, has approved a plan to restructure its $200 million debt. This move comes after the platform suspended its lending and saving programs due to financial concerns.
The approved plan involves converting the defaulted debt into a new token called Thorchain Yield (TCY). These tokens will be distributed to affected users, effectively converting their loans into equity in the THORChain ecosystem. TCY holders will receive 10% of THORChain’s network revenue in perpetuity, providing a potential revenue stream.
THORChain’s treasury will also establish a liquidity pool to facilitate the trading of TCY tokens, allowing holders to convert their equity into other assets.
This restructuring plan aims to stabilize THORChain’s operations and address its financial challenges. However, it also raises concerns about the long-term viability of the platform and the potential impact on investor confidence.
