THORChain Launches $TCY Token on May 5

THORChain is set to launch its new $TCY token on May 5, marking a pivotal moment for the protocol. This follows a turbulent period earlier this year when THORFi’s lending and savers features were abruptly paused due to rising risk.

From Circuit Breaker to Token Launch

In January, THORChain activated a protocol-level circuit breaker. This halted redemptions, froze user funds, and triggered panic across the community. Rumors of insolvency and collapse spread quickly.

But unlike many DeFi collapses, this wasn’t the end. The protocol was still generating revenue. The circuit breaker was a controlled measure, not a failure. It bought time. And from that pause came TCY — a new token backed by real fees.

What Is $TCY?

TCY stands for THORChain Yield. It’s designed to compensate affected users but also introduces a fresh yield model. It is not just a refund token — it’s a revenue-sharing asset.

The full supply of 210 million TCY will be minted at launch. Users impacted by the THORFi freeze can claim TCY 1:1 based on their USD losses. Initial liquidity includes 3 million TCY and $300,000 in RUNE seeded into a TCY/RUNE pool, launching the token at $0.10.

Once claimed, TCY can be staked to earn daily RUNE payouts. These yields come from 10% of all fees generated by THORChain, not from token emissions.

Buyback-Driven Demand

To support price stability, TCY includes several automatic buyback mechanisms:

• Unclaimed or unstaked TCY has its yield redirected to market buybacks.
• Protocol-owned TCY earns and reinvests.
• TCY/RUNE trading fees also trigger buybacks.

Additionally, THORChain’s treasury has committed $5 million over three months to purchase TCY using non-RUNE assets. This further supports the token’s market performance.

A Path Toward Composable Yield

The launch of Rujira Network will unlock deeper DeFi utility for TCY. Users will be able to stake their tokens and receive a liquid version, usable across other protocols. This keeps TCY productive while maintaining yield exposure.

Staked TCY becomes composable — trade it, deploy it, and still earn.

A Debt Restructuring Without Dilution

This launch follows THORChain’s earlier move to convert $200 million in liabilities to TCY equity. Importantly, the protocol did not mint more RUNE. Instead, it preserved its tokenomics and prioritized user recovery.

The Lending and Savers products are discontinued. Liquidity nodes are on the roadmap to boost capital efficiency.

What It Means for Users [NFA]

For users affected by the THORFi shutdown, TCY offers a structured path to recovery. For others, it’s a new way to access real protocol yield without relying on inflation. The staking model is simple. The mechanics are transparent. And the infrastructure is already live.

As with all tokens, risks remain. But for those watching THORChain’s recovery story, May 5 could be the start of something new.

Community Reaction

As expected, a lot of people with a lot of questions. Some questions have been answered, some might be answered in due time. But this does seem like a very make or break move by ThorChain given the community reaction to it so far.

• Trufree: “Thanks for the efforts and keeping us updated! Having lost the tax free collateral I had there I will probably wait 1 year to sell TCY tax free, unless price really goes nuts before or the staking payouts are really worthy staying in”
• Matija: “Everything ok with latest upgrade? Network working ok?”
• James Moriarty: “for all the yield and revenue that $tcy will generate for its stakers, how is sell pressure getting created on $rune? and how is this sell pressure any different from thorFi?”