Tribe DAO votes for the repaying sufferers of $80M Rari hack

By: Ikenna Odunze

September 22, 2022 9:21 PM

The vote to reimburse customers suffering from the hack become one of the very last governance selections for Tribe DAO which has introduced plans to wind down.

After months of uncertainty, Tribe DAO has agreed to a vote to refund $80 million in liquidity pools from decentralized finance (DeFi) platform Rari Capital to users affected by the exploit.

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 September 18 with the intention of offering victims of the hack a full to pay compensation.

Data from the Tally chain voting platform shows that 99% of eligible voters were in favor and the proposal was carried out on September 20.

As described under the voting data, individual users are paid in FEI while DAOs are paid in DAI. Users would also be required to sign a notice waiving all liability.

Fei founder Joey Santoro said on Twitter that payment would be made 24 hours after the vote was approved.

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

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

In their August 20th proposal, they explained the "challenging macro environment" and "specific challenges such as Rari Capital's Fuse hack" were all factors in the decision.

"At this stage, a responsible choice for the DAO to consider is leaving the protocol in a state which would defend the FEI peg without the need for governance."

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

In a September 20th Twitter post, Joey Santoro detailed the challenges they faced in finding a solution and hopes other DAOs out can learn from the incident.

"The biggest lesson here is that DAOs should not have to make decisions like this after the fact. An explicit upfront policy, ideally with on-chain enforcement, would have saved the DAO from needing to venture into uncharted governance territory."

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