Thorchain, a governing body, has approved a crucial proposal to address the debt crisis by converting outstanding debts into equity tokens. The majority of Thorchain validators have endorsed Government Proposal #6, indicating community consensus on tackling the nearly $200 million debt crisis in this protocol. The community-approved plan involves converting debts into shares, specifically introducing a new token called TCY with an issuance of 200 million. This means lenders and savers will receive TCY tokens instead of repaying loans in Bitcoin or Ether, effectively converting their debt claims into shares in the Thorchain ecosystem. TCY holders will be entitled to 10% of Thorchain’s income permanently. Despite the reconstruction efforts and approval of this proposal, Thorchain’s token, RUNE, continues to decline, dropping from $5.1 to $1.2 in the past month.
