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Prologue – The Rari Hack
In may 2022, two crypto lending organizations were attacked by hackers stealing approximately 90 Million USD. One of the two companies was Rari Capital which was attacked via exploit and Fei Protocol.
Tribe DAO is moving up to close its doors soon. They outlined a 157 Million USD redemption in crypto assets. The redemption will be provided to token holders who were severely impacted by the 80 Million USD Rari hack.
Tribe DAO acquired Rari in 2021 which was the largest decentralized merger of all time. Now Tribe DAO is planning to distribute DAO-controlled assets to TRIBE holders and compensate the Rari hack victims.
Rari Capital allows users to create a custom marketplace to sell, buy, borrow or lend various assets. Rari noticed a sudden drain of 80 Million USD from seven of its fuse pools on April 30th, 2022.
The Redemption Proposal From TRIBE DAO
The Redemption proposal was introduced with a motive to compensate victims with the teams who invested 90 Million USD in the TRIBE token. The company has decided to distribute approximately 16 Million USD to the victims.
The reason behind the redemption of the assets is an amalgamation of global macro economic environment, the Rari hack obviously, and futuristic regulatory risks for the project.
“Any of the mounting technical, financial, and future regulatory risks could cause the project to be far worse off than it is now,” the proposal stated.
The proposal from TRIBE DAO defines three major objectives: consolidation of DAO assets, fuse hack victim payment, and the final redemption. Each of these will have a different snapshot.
The snapshot helps determine what to include in an on-chain voting process. Also, it will give a gist of whether to adjust or change any piece. The first component will be executed on August 22nd as a consolidation component.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
