Home CryptocurrencyAltcoin The DAO tribe votes to pay out $80 million to victims of the Rari hack

The DAO tribe votes to pay out $80 million to victims of the Rari hack

by SuperiorInvest

After months of uncertainty, Tribe DAO passed a vote to refund affected users 80 million dollars misused on the decentralized finance (DeFi) platform Rari Capital liquidity funds.

After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol, and Volt Protocol, adopted a decision to vote on September 18 with the intention of fully compensating the victims of the hacks.

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

As described under the voting data, individual users will be paid back in FEI, while DAOs will be paid out in DAI. Users would also have to sign a release disclaiming any liability.

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

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

The vote was one of the final decisions on the governance of the DAO tribe, which announced plans to exit.

In their August 20 proposalthey explained the “challenging macro environment” and “specific challenges like Rari Capital’s Fuse hack” all factored into the decision.

“At this stage, the responsible choice for the DAO to consider is to leave the protocol in a state that would prevent an FEI pin without the need for governance.”

The entire process of reimbursing hack victims takes place in several rounds of voting through rapid signaling polls and on-chain; however, none ended and resolution for affected users.

In a post on Twitter on September 20, Joey Santoro explained the problems everyone faced in coming up with a solution and hopes that other DAOs can learn from the incident.

Related: DeFi Protocol Shuts Down Months After Rari Fuse Hack

“The biggest lesson is that DAOs shouldn’t make such decisions afterwards. An explicit direct policy, ideally with on-chain enforcement, would save DAOs from having to venture into uncharted governance territory.”

After the hack, a $10 million reward was offered to the hackers, but it was never made public if they responded.

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