After months of uncertainty, Tribe DAO has passed a vote to reimburse users affected by an $80 million exploit in the liquidity pools of decentralized finance (DeFi) platform Rary Capital.
After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, held a vote on September 18 with the intention of fully refunding the hack victims.
Data from on-chain voting platform Tally shows 99% of those who voted were in favor and the proposal was carried into effect on 20 September.
As described below on voting data, individual users will be paid back in FEI, while DAOs will be paid in DAI. Users are required to sign a waiver for any liability.
Fee founder Joey Santoro said on Twitter that payments will be made 24 hours after the vote passes.
1/ Rary Fuse hack payment passed on-chain to pay victims in full within 24 hours.
This is a big moment in this final ruling of Tribe DAO.
— Joey’s ERC-4626 (@joey__santoro) September 19, 2022
Total payouts are 12.68 million FEI which are trading at $0.97 at the time of writing and 26.61 million DAI which are trading at $1, according to data from CoinGecko.
The vote was one of the final administrative decisions for the Tribe DAO that announced plans to cancel.
Their August 20 offerThey cited the “challenging macro environment” and “specific challenges such as Rari Capital’s Fuse hack” as reasons for the decision.
“At this stage, a responsible choice for the DAO to consider is to abandon the protocol to a state that would protect the FEI peg without requiring governance.”
The entire process of compensating hack victims is ongoing, including snapshot signaling polls and several rounds of on-chain voting; However, none have resulted in 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 hoped that other DAOs could learn from the incident.
Related: The DeFi protocol was shut down a few months after Rari Fuse was hacked
“The biggest lesson here is that DAOs shouldn’t make such decisions after the fact. A clear progression policy, ideally with on-chain enforcement, would have saved DAOs from needing to venture into uncharted governance territory.”
6/
I hope that everyone can take these lessons and know that all stakeholders really did their best in an unprecedented situation.— Joey’s ERC-4626 (@joey__santoro) September 19, 2022
After the hack, a $10 million reward was offered for the hackers but it was never revealed if they responded.
