THORChain (@THORChain): THORChain Community Update

THORChain Community Update Thank you to the community members, Node Operators, and builders who have remained committed throughout this critical moment for the network. Your dedication and contributions have been invaluable in shaping the path forward and ensuring THORChain’s continued strength. This update summarizes the key events and decisions that have unfolded over the past few weeks. We appreciate your continued engagement and support. On Jan 23, after extensive community discussions on the existential risks posed by THORFi, Node Operators voted to pause redemptions for Lending and Savers. At the time, THORChain had accrued ~$200M in liabilities from these features. In the week and a half that followed, the network contracted: 31 validators exited, ~$100M in liquidity was shed, and $RUNE saw a significant price drop. Yet, through it all, THORChain remained fully operational—servicing cross-chain swaps, churning vaults and validators, producing blocks, and earning revenue as normal. Once again, the network demonstrated its ability to expand and contract with market dynamics. The Jan 23 pause set the conditions for community members to decide on a restructuring plan to ensure the network’s continued operation while compensating Lending and Savers users. The community stepped up, proposing 8 independent plans, which were reviewed and voted on by Node Operators. As of last night, Node Operators have officially approved "Proposal6", put forth by @AaluxxMyth of Maya Protocol. You can read the full details here: gitlab.com/-/snippets/480… All protocol devs—including @ninerealms_cap, @Maya_Protocol, @RujiraNetwork, and @strangelovelabs will immediately begin collaborating to scope out the implementation details to ensure a prompt and carefully executed rollout. While the exact timeline and specifics are still being finalized, the core plan is as follows: - THORChain will convert ~$200M of debt into equity through a new token that will receive 10% of network revenue in perpetuity. - Borrowers and Savers can claim 1 token per $1 of their owed liability. - A Liquidity Pool, seeded by the THORChain treasury, will allow equity token holders to sell their claims at their discretion. - As market demand for a share of THORChain’s revenue materializes in the token’s price, holders will have the flexibility to exit on their own terms. We will provide the community with regular updates as implementation details are finalized. Once again, we thank everyone who has shown support throughout this critical time. THORChain will continue to operate—and emerge stronger than ever despite these challenges.