THORChain Releases Latest Recovery Plan: Proposes Protocol-Owned Liquidity to Cover Losses, No RUNE Inflation

May 22 update: Following the May 15 THORChain attack, the protocol’s community has locked in a concrete recovery roadmap. Right now, Proposal ADR028 is out for review, waiting on a vote from node operators. Here’s a breakdown of its key points: First, the protocol will cover attack losses using its own liquidity pool first. Any remaining gap will be split among Synth holders (the exact split ratio is still being worked out). This means the protocol’s own liquidity will temporarily hit zero, but the plan calls for diverting future system revenue to slowly replenish POL (Protocol Owned Liquidity). On the technical side: The GG20 TSS framework will stay in place temporarily for a patch upgrade. Transactions won’t go back online until the vulnerability is fully fixed and the network completes one full Churn (node rotation) cycle. Going forward, THORChain will switch to a slower, security-first release schedule, prioritizing stability over rapid updates. For nodes and assets: Innocent nodes tied to the same treasury as the attacker will get full protection, while the attacker’s node’s RUNE stake will be seized entirely. Recovered RUNE will be paired with recouped assets from affected treasuries, and any leftover RUNE will be burned. The protocol is also offering a bounty to the attacker to incentivize returning stolen funds. If only some funds are sent back, the recovery plan will adjust proportionally. On core principles: THORChain is reaffirming its commitment to neutrality and permissionless access, and will not retroactively review the attacker’s swap transactions once trading restarts. Right now, node operators are voting on the proposal’s core direction and principles. All specific figures in the ADR are just for reference; adjustments will be made via the Mimir voting mechanism later. The protocol’s top priority is getting the network back online fast — so a yes vote is a green light for the dev team to move forward with this roadmap.