Tribe DAO Votes To Pay Back Rari Capital Hack Victims – Again

Though it’s been a long journey for the victims of the Rari Capital hack, it seems their journey has come to an end once again.

After several rounds of voting and governance proposals, Tribe DAO — the company formed from a token merger between Rari Capital and Fei Protocol — today announced Approved that it would repay the victims of the Rari hack.

The proposal comes just a step after the announced dissolution of the DAO. Other components of the dissolution included the redemption of FEI for DAI, the offering of TRIBE token holders a prorated interest in the DAO’s assets, and the removal of all governance powers from Tribe.

According to on-chain voting platform Tally, where the vote was conducted, 99% of the votes were in favor of a full refund. “If accepted, this proposal would issue a payment to those affected by the Fuse hack equal to the full amount stolen by the hacker,” the survey reads.

The decision is likely to cause déjà vu among the parties concerned, as the issue has been put to the vote more than once.

In April 2022, multiple liquidity pools of Rari Capital, a do-it-yourself lending and borrowing protocol, were robbed of $80 million. Individual users and larger DAOs were all affected by the breach. These companies had earned returns on their deposits in each of these pools when the hack took place.

Individual users are now paid back in FEI, an algorithmic stablecoin, while DAOs are paid back in DAI, Maker DAO’s popular stablecoin.

1/ The Rari Fuse Hack Payment passed on-chain to FULL pay the victims within 24 hours.

This is a big moment in these final Tribe DAO governance decisions.

— Joey 💚s ERC-4626 🦇🔊 (@joey__santoro) September 19, 2022

The forum discussion outline Users and DAOs that would be reimbursed included Babylon Finance, Olympus, Fuji DAO.

Babylon Finance recently ceased operations, quote—among others – casualties suffered as a result of the hack.

The Tribe DAO governance debacle

Importantly, today’s vote was the fourth on whether or not to cure users, drawing criticism across the industry.

In May, following the hack, the community overwhelmingly voted to use Tribe DAO’s treasury to repay affected victims. A second vote about a month later vetoed that decision by Jack Longarzo, another member of Rari and Tribe DAO. to quarrel that the original May vote was unclear “how the repayment would be implemented”.

Then, a week after the veto, the community voted again on whether to repay the victims. The answer was a resounding no.

Critics of the first vote said the governance confusion stemmed from a lack of clear policies and disaster preparedness plans that were in place before the first hack. It is unclear whether these or other concerns were resolved before the last vote. If everything goes according to plan, hack victims should be able to collect their payment tomorrow.

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