BREAKING: Altcoin Said to Be Bankrupt Announces Rescue Plan – Also Listed on Binance

The core developers of THORChain (RUNE) have announced a new restructuring plan that aims to address $200 million in liabilities accumulated through their Lending and Savings program.

The decision comes after weeks of intense community discussion and a significant contraction in network activity.

On January 23, following discussions about the risks posed by THORFi, Node Operators decided to stop refunds for lending and savings features. This move triggered a harsh backlash in the THORChain ecosystem:

• 31 validators have left the network.
• $100 million worth of liquidity was lost.
• The price of RUNE has dropped significantly.

Despite these disruptions, THORChain continued its operations, processing cross-chain swaps, verifying transactions, and generating revenue, according to the developers.

In response to the crisis, community members submitted eight different restructuring plans, which were reviewed and voted on by Node Operators. The final decision was to approve “Proposal6,” a plan developed by AaluxxMyth of Maya Protocol.

Key elements of the plan include:

• Conversion of $200 million in debt into equity through a new revenue sharing token.
• Debt holders receive 1 equity token for every $1 they owe.
• Equity token holders will receive 10% of THORChain’s revenue in perpetuity.
• A liquidity pool will be created by the THORChain treasury, allowing claimants to sell their claims at market value.

While the exact timeline and implementation details are still to be finalized, the THORChain team has committed to regular updates as the rebuild progresses. Despite the recent setbacks, developers remain optimistic:

“THORChain will continue to operate and emerge stronger than ever despite these challenges.”

However, the announced plan appears to have minimal impact on the RUNE price for now:

*This is not investment advice.

Source