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THORChain approves plan to restructure $200M debt
Home Articles Thorchain Approves Plan to Restructure $200M Debt

Thorchain Approves Plan to Restructure $200M Debt

Ola Amujo
Ola Amujo
Ola Amujo
Author:
Ola Amujo
Ola is a content writer and editor specializing in crypto and blockchain. With years of experience writing engaging blogs and news content, he has helped readers understand complex concepts, discover new opportunities, and stay ahead of emerging trends.
February 4th, 2025

THORChain node operators have approved a restructuring plan proposal involving converting THORChain’s $200 million debt into equity tokens.

This decision will finally allow THORChain to resolve its monetary obligations, maintain operational stability, and regain user trust. 

Dubbed Proposal6, the restructuring proposal came about after THORChain decided to suspend its lenders and savers program. This proposal was not made without THORChain consulting its community about the liabilities arising from using its ThorFi feature.

Features of Proposal6

Proposal6 was initially proposed by Maya Protocol’s Aaluxx Myth and put to the vote by Node Operators. Now, the restructuring plan has been officially ratified. THORChain would mint 200 million TCY tokens in this proposal, each representing $1 of THORChain’s debt.

Those affected by suspending the lenders and savers program will receive these tokens as airdrops. 

Following the approval of Proposal6, the bulk of the implementation is left up to THORChain’s development teams, including groups from Maya Protocol, Rujira Network, Strangelove Labs, and Nine Realms Capital.

While the exact timeline for this proposal has not yet been stated, these groups are entrusted with ensuring its timely but thorough rollout.

Not all members of their community are impressed with the plan. Some envision this as a means of returning to growth and stability for THORChain. However, others doubt the idea’s long-term feasibility.

They also expressed doubts concerning the intricacy of the novel token system and the possible legal ramifications of issuing it. 

The Effect of Proposal6 on Rune

After the approved plan was announced, RUNE saw an uptrend of 13.7% and is now priced at around $1.38, marking a notable rise in 24 hours.

While this has been a generally positive response, this upward trend in the price of RUNE comes after a 37.8% drop in the previous week and a 72.2% drop in the last month. 

However, the upward trends indicate that while the new approval has been positively received, general market conditions or worries may still affect Investors’ moods about THORChain’s long-term stability.

RUNE Price Chart 1D 04.02.2025

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Ola Amujo
Ola is a content writer and editor specializing in crypto and blockchain. With years of experience writing engaging blogs and news content, he has helped readers understand complex concepts, discover new opportunities, and stay ahead of emerging trends.