Tribe DAO votes in favor of repaying victims of $80M Rari hack

After months of uncertainty, the Tribe DAO has approved a vote to reimburse users affected by the $80 million exploit on decentralized finance (DeFi) platform Rari Capital’s Liquidity Funds.

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

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

According to the description below the voting data, individual users will be refunded in FEI, while DAOs will be paid in DAI. Users should also sign a disclaimer.

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

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

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

In their Aug. 20 proposal, they explained the “challenging macro environment” and “specific challenges like Rari Capital’s Fuse hack” were factors in the decision.

“At this stage, a responsible option for the DAO to consider is to leave the protocol in a state that would advocate for FEI fixing without the need for government.”

The entire process of reimbursing hack victims has been ongoing, with several rounds of voting via instant and chain-signal polls; however, none resulted in a resolution for affected users.

In a Twitter post on September 20, Joey Santoro explained the challenges they all faced in finding 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 here is that DAOs shouldn’t make decisions like this after the fact. An explicit initial policy, ideally with on-chain enforcement, would have saved the DAO from having to venture into governance territory unknown”.

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