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Appreciation goes out to all community members, Node Operators, and builders who have remained dedicated during this pivotal time for the network. Your commitment and contributions have been essential in navigating the path ahead and

ensuring THORChain’s resilience. This update highlights the significant events and decisions that have transpired over recent weeks. Gratitude is extended for your ongoing involvement and

On January 23, after thorough discussions regarding the threats posed by THORFi, Node Operators voted to halt redemptions for Lending and Savers. At that moment, THORChain faced approximately $200 million in liabilities tied to these

functionalities. Over the following week and a half, the network saw a contraction: 31 validators departed, around $100 million in liquidity diminished, and the price of $RUNE dropped significantly. Despite these challenges, THORChain

remained fully operational—conducting cross-chain swaps, managing vaults and validators, generating blocks, and earning revenue as usual. This again proved the network's capability to adapt to market

fluctuations.

The pause initiated on January 23 allowed community members to consider a restructuring plan to maintain network operations while compensating Lending and Savers users. The community proposed eight independent plans, which were subsequently

reviewed and voted on by Node Operators.

As of last night, Node Operators officially approved "Proposal 6," presented by a member of Maya Protocol. Full details can be found here: https://t.co/pMGndTPbb8

All protocol developers—including various teams—will promptly collaborate to outline the implementation specifics for a timely and precise rollout.

While the exact timeline and particulars are still under consideration, the fundamental plan is as follows:

  • THORChain will convert about $200 million of debt into equity through a new token that will consistently receive 10% of network

revenue.

  • Borrowers and Savers will be able to claim one token for every dollar of their outstanding liability.
  • A Liquidity Pool, supported by THORChain’s treasury, will enable equity token holders to sell their claims at their own

discretion.

  • As market interest in a share of THORChain’s revenue develops, token holders will have the option to exit at their

convenience.

Regular updates will be shared with the community as implementation details are confirmed.

Once more, thanks to everyone who has shown support during this crucial period. THORChain is set to continue operating and will emerge even stronger in the face of these challenges.