Threadcast link:
@khaleelkazi/re-leothreads-abts17tm
Link to recording:
https://x.com/khalkaz/status/1914396944182681802
Speakers
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Introducing Aaluxx and the Maya Protocol
The episode began with the host welcoming Aaluxx, who is on the protocol team and was one of the co-founders of the Maya protocol - a friendly fork of Thorchain. Aaluxx explained that Maya was launched to bring redundancy to the cross-chain space, as they believe it is crucial to have multiple protocols operating in this domain. Despite sometimes being labeled as "copycats" early on, Aaluxx said the Maya team has always been focused on supporting the broader cross-chain ecosystem, including helping Thorchain when needed.
The Origins and Goals of TCY
Aaluxx then discussed how he got involved with the TCY token proposal (Prop 6) on Thorchain. He explained that the original idea behind TCY was born out of the need to "save Thorfy" - the Thorchain lending protocol that ran into issues. Aaluxx saw TCY as a way to provide an equitable outcome for the various participants in Thorchain, including lenders, LPs and node operators who had all taken losses.
Designing an Equitable Solution
A key aspect of the TCY proposal, according to Aaluxx, is that it aims to provide the most equitable outcome possible for everyone involved. Rather than having a fixed, rigid structure, TCY gives participants more autonomy in deciding how to handle their positions. For example, lenders can choose to sell their debt claims at the price they are comfortable with, rather than having a fixed haircut imposed on them.
Aaluxx emphasized that with TCY, everyone takes a "small haircut" in the short-term, but the long-term potential upside makes it a better outcome than alternatives like simply freezing Thorchain and returning whatever assets are left. He believes TCY provides a path for the protocol to continue operating and growing, which benefits all stakeholders in the long run.
The TCY Token Mechanics
The host and Aaluxx then dove into the technical details of the TCY token. Aaluxx explained that TCY holders will receive 10% of Thorchain's protocol fees in perpetuity. This creates buy pressure for TCY, as the protocol itself will be a consistent buyer of the token using the fee revenue.
Additionally, Aaluxx discussed the concept of sTCY, which is a "self-compounding" version of TCY. sTCY holders can stake their tokens to automatically reinvest the protocol fee payouts back into buying more sTCY, increasing their holdings over time.
The Role of Rune and the Broader Thorchain Ecosystem
The conversation then shifted to how TCY fits into the broader Thorchain ecosystem and the role of the native Rune token. Aaluxx explained that Rune will likely maintain a much larger market cap than TCY, as the majority of rewards still go to Rune stakers and LPs. However, he sees Rune and TCY as complementary, with users able to hold a mix of the two to capture different benefits.
Aaluxx believes Rune's future will be as a "booming, cash-flowing, decentralized business" as Thorchain and the cross-chain space continue to grow. He sees TCY as providing another way for users to gain exposure to this growth, with the token's price dynamics potentially fluctuating more than Rune's.
Launch Details and Cautionary Notes
Towards the end of the discussion, Aaluxx provided some details on the upcoming TCY launch. He explained that the exact launch date is still to be determined, as it depends on the Thorchain 3.5.0 upgrade. However, he assured listeners that there will be ample notice given to the community before the launch occurs.
Aaluxx strongly cautioned users to be extremely careful during this period, as it is a prime opportunity for scammers. He emphasized the importance of only using official Thorchain and TCY interfaces, and to never rush into claiming or interacting with the token. The host and Aaluxx both stressed that there is no need to hurry, as users will have an extended period to claim their TCY.
In closing, Aaluxx encouraged the community to keep an open mind, do their own research, and get involved if they feel they can contribute to the success of TCY and the broader Thorchain ecosystem.