Tornado Cash

Tornado Cash is a privacy-focused decentralized finance application built on Ethereum and the BNB Chain that allows users to obscure the on-chain history of their cryptocurrency transactions. It addresses the fact that most public blockchains record every transfer in a transparent ledger, meaning anyone can trace funds from one address to another. The TORN token is the governance token associated with the protocol, giving holders the ability to participate in decisions about its future development.

Tornado Cash uses cryptographic techniques, specifically zero-knowledge proofs, to break the on-chain link between a deposit address and a withdrawal address, so observers cannot connect the two. Users deposit a fixed denomination of tokens into a smart contract pool and later withdraw an equivalent amount to a different address, with the proof of ownership verified mathematically rather than by identity. TORN tokens exist on Ethereum and are used to vote on protocol governance proposals; the asset itself does not have its own consensus algorithm or block time.

The protocol generated 18,711 USD in fees over the most recent 24-hour period, 102,515 USD over the trailing 7 days, 494,124 USD over the trailing 30 days, and 5,380,947 USD over the trailing 12 months. Fees are paid by users who interact with the mixing pools and, when annualized from the trailing 30-day figure, reach 6,011,842 USD. At current figures, the market capitalization divided by those annualized fees stands at 5.02, while the fully diluted valuation divided by the same figure is 10.47. Fee growth over the last 30 days was 342.03 USD in change, and the fee yield — annualized fees expressed as a percentage of market capitalization — sits at approximately 19.93 percent, though how those fees are distributed to or retained by TORN holders depends on governance decisions that are not detailed in the available data.