Although it’s been a long road for victims of the Rari Capital hack, it appears as if their journey is once again at its end.
Following several rounds of voting and governance proposals, Tribe DAO—the entity spawned from a token merger between Rari Capital and Fei Protocol—today confirmed that it would repay victims of the Rari hack.
The proposal is just one move following the DAO's announced dissolution. Other components of the dissolution included redeeming FEI for DAI, offering TRIBE token holders pro-rata shares of the DAO's assets, and removing all of Tribe's governance powers.
According to on-chain voting platform Tally, where the vote was conducted, 99% of votes were in favor of full reimbursement. “If passed, this proposal would issue a payment to those affected by the Fuse Hack corresponding to the full amount stolen by the hacker,” read the poll.
The decision likely evokes a sense of deja vu among affected parties, as the question has been put to a vote more than once.
In April 2022, several liquidity pools on Rari Capital, a do-it-yourself lending and borrowing protocol, were robbed of $80 million. Individual users and larger DAOs were all affected by the breach. These entities had been earning yield on their deposits in each of these pools when the hack occurred.
Individual users will now be paid back in FEI, an algorithmic stablecoin, while DAOs will be paid in DAI, Maker DAO’s popular stablecoin.
1/ The Rari Fuse Hack Payment has passed on-chain to FULLY pay the victims in 24 hours.
This is a big moment in these final governance decisions of the Tribe DAO.
— Joey 💚’s ERC-4626 🦇🔊 (@joey__santoro) September 19, 2022
The forum discussion outlining which users and DAOs would be refunded included Babylon Finance, Olympus, Fuji DAO.
Babylon Finance recently shuttered its operations, citing—among other reasons—losses suffered from the hack.
Tribe DAO’s governance debacle
Importantly, today’s vote was the fourth on whether to make users whole or not, raising criticism from throughout the industry.
In May, following the hack, the community had voted overwhelmingly to use Tribe DAO’s treasury to pay back affected victims. A second vote roughly a month later then vetoed this decision with Jack Longarzo, another member of Rari and Tribe DAO, arguing that the original May vote was unclear “about how the repayment would be implemented.”
Then, a week after the veto, the community voted again on whether to repay the victims. The answer was a resounding no.
Today's question was settled via an on chain vote with no veto capabilities, with funds set to be trustlessly distributed in about 17 hours.
Critics of the initial vote said that the governance confusion came from a lack of clear disaster preparedness policies and plans in place prior to the initial hack. It is unclear whether these or other concerns were resolved before the latest vote.