THORChain (RUNE ($0.88)), a leading altcoin project, has decided to issue a new coin to balance its debt exceeding $200 million. The protocol’s governing body approved a proposal to convert this debt into a new coin called TCY. Instead of recovering their assets, creditors and savers will receive TCY coins which grant them rights to a portion of THORChain’s revenue. However, uncertainties remain regarding how long this process will take and its impact on stakeholders.

Debt Restructuring and TCY Coin Initiative

THORChain’s debt crisis became prominent when it suspended its THORFi services in January. The protocol aims to resolve this issue through a 90-day restructuring plan. As part of the approved proposal, 200 million TCY coins will be released, distributing one TCY for every dollar of debt. TCY coin holders will be entitled to 10% of THORChain’s future revenues.

According to the model proposed by the project, a RUNE/TCY liquidity pool will be established for the TCY coin. A sum of $5 million from the treasury fund is allocated to ensure $500,000 in liquidity.

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