10% of all revenue on THORChain, in perpetuity, goes towards TCY tokens. TCY token holders have to stake their tokens in order to access their pro rata share of the revenue. The revenue is paid out in RUNE tokens (the main token of THORChain).
There are no block rewards on THORChain. All the revenue is real, paid by real users. Therefore, the revenue going towards TCY tokens is real and not inflationary. TCY was created to resolve THORChain's $210 million debt created by THORFi. THORFi was the combination of Lending and Savers features.
It was defaulted on in January 2025. Each $1 of debt was converted into 1 TCY, resulting in 210 million TCY tokens outstanding. This way, creditors received tokens instead of a total loss. Giving them a piece of the network's future revenue, aligning their interests with the protocol, and helping stabilize the network.
