THORChain Yield (TCY)

Under the project’s stated model, 10% of THORChain revenue is allocated to TCY in perpetuity. Holders must stake TCY to receive their proportional share, and distributions are paid in RUNE. This structure is intended to connect TCY rewards to actual network activity, including fees generated by users of THORChain, rather than issuing newly created incentives as the source of yield. As a result, TCY’s relevance depends closely on the volume, fee generation, and long-term adoption of the THORChain protocol.

TCY was introduced as part of the response to debt associated with THORFi, the former THORChain lending and savers product suite. According to the project description, THORFi defaulted in January 2025, leaving about $210 million of obligations. The debt was converted at a rate of $1 into 1 TCY, creating 210 million TCY tokens outstanding. This conversion gave affected creditors a claim on future protocol revenue instead of an outright loss, while also aligning them with THORChain’s continued operation and growth. TCY therefore functions as both a recovery instrument and a revenue-sharing token within the wider THORChain ecosystem.