THORChain Yield (TCY)

“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.

What makes THORChain Yield (TCY) unique?

The yield from unclaimed and unstaked TCY is forfeited and redirected towards the protocol-owned reserve and used to buy more TCY. The yield from the TCY tokens owned by the protocol is also used to buy more TCY tokens. This creates a constant bid on the TCY token. In theory, over a long enough period of time, the protocol will own the entire supply of the TCY tokens as compounding takes off.

The TCY AutoCompounder is a permissionless smart contract that enables TCY holders to use their yield to automatically buy more TCY tokens and compound their position. Users of this feature receive an sTCY token which will eventually be tradeable and/or used in future DeFi products.

What is the History of THORChain Yield (TCY)?

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.

What’s next for THORChain Yield (TCY)?

The THORChain Treasury has committed to buying $5 million worth of TCY in the open market. This is to provide support for the TCY price and help create liquidity for any TCY holders who wish to exit their position instead of holding on and waiting for the TCY price to go up.

The Treasury will not be selling RUNE to make the TCY purchases and instead will sell other crypto assets to purchase TCY. Therefore, this will not create any sell pressure on the RUNE token.

What can THORChain Yield (TCY) be used for?

TCY does not have voting rights or influence in the governance of the THORChain network. It is solely a yield generating token.

The TCY token can only be used for speculating on the revenue earnings potential of the THORChain network and collecting a pro-rata share of 10% of network revenue.

It’s possible to use TCY tokens to become a liquidity provider in the TCY/RUNE pool, however it’s advised against doing that, since liquidity providers do not collect any fees generated by the pool. All the fees generated by the pool are used to buy TCY and added to the protocol-owned TCY position. Being a liquidity provider in the TCY/RUNE pool would only result in impermanent loss with no yield to make up for it.”