Market news: THORChain is facing a debt crisis, validation nodes have suspended network operations, and a vote on a restructuring plan is underway

ChainCatcher news, according to X user TCB, THORChain is currently in a state of insolvency. 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 are only $107 million in external liquidity.

TCB stated that THORChain's borrowing obligations are fulfilled by minting and selling RUNE tokens, a design that has led to high reflexivity, exacerbating the problem. After repaying $4 million in RUNE liabilities yesterday, the protocol has accrued additional millions in RUNE debt. Validator nodes have paused network operations and are voting on a restructuring plan.

THORChain faces two options: first, to maintain the status quo, where about 5-7% of the value will be withdrawn by the first exiters, causing RUNE to continue to decline; second, to declare a debt default, retaining valuable parts through bankruptcy restructuring, and gradually repaying creditors without affecting the protocol's viability. TCB recommends adopting the second option, protecting liquidity providers' rights, maintaining network value, and achieving long-term development.