THORChain is in a debt crisis, the verification node has temporarily suspended network operation, and voting is underway for a restructuring plan

News on January 24, according to user TCB, THORChain is currently insolvent. Data shows that THORChain's current liabilities include $97 million in loans (ETH and BTC) and approximately $102 million in savings and synthetic assets, while available assets only amount to $107 million in external liquidity.

TCB stated that THORChain's loan obligations are fulfilled by minting and selling RUNE tokens, a design which has led to high reflexivity and further exacerbated the problem. After repaying $4 million of RUNE debt yesterday, the protocol still owes millions more in RUNE. Validator nodes have suspended network operations and are voting on a restructuring plan.