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 was not done without THORChain consulting its community about the liabilities that would arise from using its ThorFi feature.
Features of Proposal6
Proposal6 was initially brought forward 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 of this proposal has not yet been stated, these groups are entrusted with ensuring the rollout is timely but thorough.
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 long-term feasibility of the idea. They also expressed doubts concerning the intricacy of the novel token system and the possible legal ramifications of issuing them.
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 of RUNE’s price comes after a 37.8% drop within the week and a 72.2% drop within the month.
However, the upward trends indicate that while the new approval has been positively met, the Investor’s mood may still be impacted by general market conditions or worries about THORChain’s long-term stability.
READ MORE: Bitcoin Payment Bill Moves to the Next Step in Oklahoma
