DAO Tribe Votes to Reimburse Victims of Rari Capital Hack—Again

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Although it’s been a long road for the victims of the Rari Capital hack, it looks like their journey is coming to an end once again.

After several rounds of voting and governance proposals, Tribe DAO – the entity resulting from a token merger between Rari Capital and Fei Protocol – today confirmed that he would reimburse the victims of the Rari hack.

The proposal is just one step after the announced dissolution of the DAO. Other elements of the dissolution included buying out FEI for DAI, offering TRIBE token holders pro rata shares of DAO’s assets, and removing all governance powers from Tribe.

According to on-chain voting platform Tally, where the voting took place, 99% of votes were in favor of a full refund. “If passed, this proposal would issue a payment to those affected by the Fuse Hack equal to the total amount stolen by the hacker,” the poll read.

The decision likely evokes a sense of deja vu among the parties involved, as the issue has been put to a vote more than once.

In April 2022, multiple liquidity pools on Rari Capital, a do-it-yourself lending and borrowing protocol, were stripped of $80 million. Individual users and large DAOs were all affected by the breach. These entities had earned a return on their deposits in each of these pools when the hack occurred.

Individual users will now be reimbursed in FEI, an algorithmic stablecoin, while DAOs will be paid in DAI, Maker DAO’s popular stablecoin.

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

Babylon Finance recently closed its operations, citingamong other reasons – losses incurred due to piracy.

The Tribe DAO governance debacle

Importantly, today’s vote was the fourth on whether to make users whole or not, raising criticism of the whole industry.

In May, following the hack, the community voted overwhelmingly to use Tribe DAO cash to reimburse affected victims. A second vote about a month later then vetoed that decision with fellow Rari and Tribe DAO member Jack Longarzo, arguing that the initial vote in May was unclear “about how the refund would be implemented”.

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

Today’s issue was settled by a chain vote without the ability to veto, with funds expected to be distributed in confidence in approximately 5 p.m.

Critics of the initial vote said the governance confusion stemmed from a lack of clear disaster preparedness policies and plans in place before the initial hack. It is unclear whether these or other concerns were resolved before the final vote.

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