Tribe DAO Votes To Reimburse Victims Of $80 Million Rari Hack

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After months of uncertainty, the Tribe DAO passed a vote to reimburse affected users for the $80 million exploit on the liquidity pools of decentralized financial (DeFi) platform Rari Capital.

After several ballots and board proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, decided to vote on September 18 with the intention of fully compensating victims of hacks.

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

As per the description below the voting data, individual users are reimbursed in FEI while DAOs are paid in DAI. Users should also sign a notice that releases any liability.

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

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

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

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In their Aug. 20 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 is to leave the protocol in a state that would defend the FEI link without the need for governance.”

The entire process of compensating the victims of the hack is underway, with several rounds of voting via snapshot signal polls and on-chain; however, none ended in a fix for affected users.

In a September 20 Twitter post, Joey Santoro explained the challenges they all faced in coming up with a solution and hopes other DAOs can learn from the incident.

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Related: DeFi protocol shuts down months after the Rari Fuse hack

“The biggest lesson here is that DAOs should not make such decisions afterwards. An explicit policy in advance, ideally with enforcement in the chain, would have saved the DAO from an adventure into unknown administrative territory.”

After the hack, a $10 million bounty was offered to the hackers, but it was never disclosed whether they responded.