Here’s a simplified summary of the Best proposal I’ve seen regarding $Rune debt repayment:

Step 1: Dollarizing and Tokenizing Debt
•All debts will be calculated in USD at the time the protocol was halted.
•A new token called $TUSD will be created, representing debt claims (1:1 with USD value of the debt).
•THORChain will use revenues to market buy and burn $TUSD frequently (at least monthly).
•The protocol will buy back these claims for up to 200% of their initial USD value, creating a secondary market for $TUSD (similar to a bond).
•Creditors can mint $TUSD by signing a transaction with their wallet.
•$TUSD may initially trade below $1, but the potential for 200% repayment could attract speculators.

Step 2: Create an “Unwind Module”
•10% of all revenue (from swap fees) will be allocated to an Unwind Module to fund debt repayment.
•This module will collect $RUNE and ensure no disruption to THORChain’s other functions (e.g., node rewards, liquidity payouts).
•The 10% cap is sustainable and ensures the protocol remains productive while repaying debts.

Step 3: Retire ThorFi
•ThorFi features (like savers, lending, and synthetic assets) will be phased out to focus solely on THORChain’s core purpose as a decentralized exchange (DEX).
•Key changes:
•Permanently lock the protocol-owned liquidity (POL) of 5 million $RUNE.
•Convert synthetic assets and other ThorFi features to standard liquidity pool (LP) units.
•Forcefully exit RunePool participants and reimburse them in $RUNE.
•Remove unnecessary code to reduce maintenance and security risks.
•All assets tied to savers/synthetics will remain in the pools, unassigned and locked, until the end of the debt liquidation process.

Step 4: Create a Claim Interface and Orderbook
•Creditors will have access to an interface to claim $TUSD by signing a message with their wallet.
•An orderbook will allow creditors to sell their $TUSD claims on a secondary market.
•THORChain will use 10% of swap fees to market buy claims from this orderbook.

Step 5: Automate Market Buys
•An automated process will market buy $TUSD claims from the orderbook every hour, ensuring consistent progress in debt repayment.

Step 6: Finish Unwind Process and Retire Debt Code
•Once there are over $1 million in unclaimed market order bids for $TUSD for more than a month, all debt-related code (e.g., $TUSD, orderbooks) will be retired.
•All liabilities will be resolved, and THORChain will return to being a pure DEX, leaving financial instruments to application-layer solutions.

Key Takeaways:
1.Debt Repayment: THORChain will repay debts via $TUSD, backed by swap fee revenues.
2.200% Incentive: Creditors may receive up to double the USD value of their claims, encouraging participation.
3.Simplification: Non-core features like ThorFi will be retired, making THORChain more sustainable and focused.
4.Revenue-Funded: 10% of swap fees will fund repayments without harming the protocol’s growth.Goal: Once debts are repaid, the protocol will operate solely as a DEX.

This ensures a transparent, sustainable way to settle debts while aligning the protocol’s future with its core purpose.
#Rune #TUSD