Ultimate magazine theme for WordPress.

Tribe DAO votes to pay back victims of $80 million Rari hack

After months of uncertainty, the Tribe DAO has passed a vote to repay affected users of the $80 million exploit on Rari Capital’s decentralized finance (DeFi) platform liquidity pools.

After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, made the decision to vote on Sunday with the intention of fully compensating hacking victims.

Data from on-chain voting platform Tally shows that 99% of eligible voters were in favor and the proposal went ahead on Tuesday.

As described under the voting data, individual users are paid back in Fei USD (FEI) while DAOs are paid in Dai (DAI). Users would also have to sign a notice waiving all liability.

In a Sept. 20 Twitter post, Fei founder Joey Santoro said on Twitter that payment would be made 24 hours after the vote was passed.

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 total payment amount is 12.68 million FEI trading at $0.97 at the time of writing and 26.61 million DAI trading at $1 according to CoinGecko data.

The vote was one of the final governance decisions for Tribe DAO, which has announced plans to wind it down.

In their Aug. 20 proposal, they stated that the “challenging macro environment” and “specific challenges like Rari Capital’s Fuse hack” were all factors in the decision.

“At this stage, it is a responsible decision that the DAO should consider leaving the protocol in a state that would defend RDI connectivity without the need for governance.”

The entire process of compensating victims of the hack was underway, with multiple rounds of voting through snapshot signaling polls and on-chain. However, none ended with a solution for affected users.

Santoro explained the challenges they all faced in finding a solution and hopes other DAOs can learn from the incident.

Related: The DeFi protocol will be shut down months after the Rari Fuse hack

“The biggest lesson here is that DAOs don’t have to make such decisions after the fact. An explicit ex ante policy, ideally with on-chain enforcement, would have saved the DAO from having to venture into uncharted governance territory.”

I hope everyone can take these lessons and know that everyone involved really did their best in an unprecedented situation.

— Joey’s ERC-4626 (@joey__santoro) September 19, 2022

After the hack, the hackers were offered a $10 million bounty, but it was never announced if they responded.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers

Comments are closed.

%d bloggers like this: