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

After months of uncertainty, the Tribe DAO has voted to pay back users affected by an $80 million exploit against the liquidity pool of decentralized finance (DeFi) platform Rari Capital.

The Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, after several votes and governance proposals, aimed to issue a full refund to hack victims on Sept. 18. voted.

According to data from on-chain voting platform Tally, 99% of those who voted in favor of the proposal went into effect on September 20th.

Individual users are paid in FEI and DAO in DAI, as explained below in the voting data. Also, the user must sign a message disclaiming liability.

Fei founder Joey Santoro said on Twitter that payments will be made 24 hours after the vote is passed.

1/ Rari Fuse Hack Payment goes through on-chain and pays victims in full within 24 hours.

This is a key moment in these final governing decisions of the Tribal DAO.

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

According to CoinGecko data, the total payout is 12.68 million FEI trading at $0.97 and 26.61 million DAI trading at $1 at the time of writing.

This vote was one of the final governance decisions of the Tribe DAO, which announced plans for decommissioning.

The Aug. 20 proposal explained that a “challenging macro environment” and “specific challenges such as Rari Capital’s Fuse hack” were all factors in the decision.

“At this stage, the responsible choice for the DAO to consider is to leave the protocol in a state where it adheres to the FEI peg without the need for governance.”

The entire process of reimbursing hack victims is underway, with several rounds of voting through snapshot signaling polls and on-chain. However, it did not lead to a resolution 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 this incident.

Related: DeFi protocol shuts down months after Rari Fuse hack

“The biggest lesson here is that the DAO does not need to make such decisions after the fact. It eliminates the need to step into territory.”

6/
I want everyone to learn these lessons and know that all stakeholders have truly done their best in this unprecedented situation.

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

A $10 million bounty was offered to the hackers after the hack, but it was not disclosed if they responded.