TCY

TCY: THORChain’s Revenue-Share Token for THORFi Creditors

TCY is a native THORChain asset created during the 2025 restructuring of the network’s failed THORFi lending and savings products. Its central function is to distribute a portion of THORChain system income to stakers, but its value depends on network activity, staking mechanics, liquidity, and the continued operation of THORChain itself.

What TCY represents

TCY was introduced as part of THORChain’s response to the January 2025 failure of its THORFi lending and Savers products. The project’s published framework converted eligible dollar-denominated claims into TCY at a stated rate of one token per dollar of affected assets. This makes TCY different from RUNE: it was not created as THORChain’s gas, settlement, liquidity, or validator-bonding asset. Instead, it is a native token intended to give affected creditors an ongoing economic claim on part of the network’s income.

The documented maximum and total supply is 210 million TCY, corresponding to the project’s stated estimate of the restructured THORFi obligation. The token was issued on THORChain rather than on Ethereum or another external chain. Claimants must direct the claim to a THORChain address, and the official launch material says claimed tokens are automatically staked unless the holder later unstakes them.

How the revenue share works

TCY’s main economic mechanism is staking. THORChain documentation says 10% of system income is allocated to the TCY staking module, with RUNE distributed to eligible TCY stakers in proportion to their staked balances. The implementation proposal describes a recurring distribution process and separate handling for TCY that remains in the claiming module, is unstaked, or is held in the TCY liquidity pool. The payout is therefore denominated in RUNE rather than TCY or dollars.

The practical result is that TCY functions more like a fee-participation asset than a conventional utility token. Holding TCY without staking does not provide the same direct distribution described in the documentation. The official interface supports staking, unstaking, claiming, and compounding, while the project says unclaimed or unstaked allocations can contribute to protocol-owned TCY through market purchases. These mechanics may reduce the freely circulating amount over time, but that is a project design objective, not a guaranteed outcome.

Where THORChain fits in

THORChain is a cross-chain liquidity protocol designed to swap native assets such as Bitcoin and Ether without requiring users to deposit wrapped versions into a centralized exchange. Its documented architecture routes swaps through RUNE-linked liquidity pools. Vaults operated by the node network receive assets on their original chains, while threshold-signature controls are used to authorize outbound transactions. This broader activity is the source of the system income on which TCY’s distribution depends.

RUNE remains the core network asset. THORChain’s own materials describe it as the settlement asset present in liquidity pools, the asset bonded by node operators, and the denomination used for fees and yield. TCY does not replace those functions. Its relationship with RUNE is instead dependent: TCY rewards are paid in RUNE, and TCY trading is supported through a RUNE/TCY liquidity pool on THORChain.

Governance and control

TCY was implemented through THORChain’s governance and code process, including the Proposal 6 implementation plan and THORNode merge request 3988. The code documentation describes a dedicated claiming module, staking module, claim records, staking and unstaking memos, and a system-income allocation. These details show that TCY is implemented at the chain level rather than as a simple external token contract.

TCY holders do not receive the same governance role as RUNE holders or node operators. The project’s technical documentation explicitly states that TCY has no governance rights. Decisions about distribution parameters, network operation, code changes, and security therefore remain dependent on THORChain’s governance and validator framework rather than on TCY ownership alone.

Trading, custody, and practical dependencies

TCY is a native THORChain bank asset with the denom tcy, not an ordinary smart-contract token on a general-purpose chain. Wallet and application support must therefore include THORChain-native assets, and users need a compatible THORChain address for staking or claiming. The official interface warns that support for RUNE does not necessarily mean support for TCY.

Market access is tied to THORChain liquidity infrastructure. The project describes a RUNE/TCY pool, while the THORChain explorer identifies TCY staking and transfer activity as native network transactions. This creates a practical dependency on pool depth, wallet compatibility, transaction fees, and the continued availability of interfaces that correctly construct THORChain memos. A quoted TCY value can also diverge materially from any theoretical recovery value because the token trades in an open market.

What the token does not promise

TCY’s revenue share is not a fixed interest rate, a repayment guarantee, or a promise that each token will recover one dollar. The technical documentation describes the distribution as dependent on system income and states that full debt recovery is market dependent and not guaranteed. If THORChain activity, fee generation, or RUNE’s market value falls, the value of the distribution may fall as well.

The restructuring also leaves TCY holders exposed to the same operational and security dependencies that affect THORChain: validator performance, bonded RUNE, cross-chain vault operation, liquidity-pool health, software changes, and the governance decisions that control the network. The project describes TCY as secured by THORChain’s consensus, but that should not be read as an assurance that the asset is free from protocol, market, custody, or implementation risk.

Key takeaways

• TCY was created to restructure eligible THORFi claims after the lending and Savers failure in early 2025.
• Its principal function is to distribute 10% of THORChain system income to eligible TCY stakers.
• Rewards are paid in RUNE, so TCY holders are exposed to both THORChain activity and RUNE value.
• TCY is a native THORChain asset with a fixed stated maximum supply of 210 million tokens.
• TCY holders do not have governance rights over the wider THORChain network.
• Trading, staking, custody, and claiming depend on THORChain-native infrastructure and compatible interfaces.

Risks and open questions

• TCY distributions depend on future THORChain system income and are not a fixed yield or repayment guarantee.
• Rewards are paid in RUNE, creating exposure to RUNE liquidity and market value rather than only to TCY.
• TCY has no stated governance rights, leaving key parameters and network changes under THORChain’s governance and validator processes.
• Market liquidity, wallet support, transaction fees, and interface availability may affect the ability to trade, claim, stake, or unstake.
• The token’s intended value recovery is market dependent; the project does not guarantee that TCY will trade at one dollar.
• THORChain’s cross-chain vaults, node security, software, and liquidity infrastructure remain material dependencies.