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Following an April hack attack that affected many Tribe users, the Tribe DAO community offered compensation.

The tribe is a decentralized autonomous organization (DAO) that controls three projects in the ecosystem. The tribe was launched in 2021 when Fei Protocol acquired Rari Capital. The Tribe ecosystem runs a protocol known as Turbo Liquidity Accelerator (Tribe Turbo). Tribe Turbo allows DAOs to issue FEI tokens in Fuse pools of choice (a Rari product) for free.

On January 13, 2022, all of TRIBE’s cash was transferred to Fuse, but this caused both FEI and Tribe to collapse. Additionally, the hacking attack in April cost the organization funds worth more than $80 million spread across multiple Fuse pools. After the attack, Defi Protocol offered the hacker $10 million to return the funds but got no response.

Platforms to be closed following unsuccessful recovery efforts

The DAO tribe did not recover from the impact of the attack as the community voted on a proposal to disband DAO. Approval of the proposal would mean affected users would be compensated, with a partial refund of $16 million.

Babylon Finance, a decentralized finance protocol affected by the Rari Fuse hack, announced the shutdown after unsuccessful recovery efforts. Babylon Finance CEO Ramon Recuero explained the setbacks faced by the platform in a tweet.

Recuero said the company lost $3.4 million in the attack and fell from $30 million in value to $4 million. Additionally, the native Babylon protocol BABL token saw a drop in sentiment and fell from $20 to $6.

Tribe DAO has announced plans to close operations following final governance compensation decisions. Tribe DAO’s decision is due to the hacking attack and extreme macro environment conditions.

DAO Tribe Votes for Full Refund

After many votes and proposals, on September 18, Tribe DAO decided to issue full refunds to users affected by the Hack. The refund proposal was executed on September 20 after a review of voting data. Voter data from Tally (an on-chain voting platform) indicated that 99% of voters voted in favor of the proposal.

According to the description of the voting data, DAOs would be compensated in DIA, while individual users would receive reimbursement in FEI. Joey Santoro, the founder of Fei, said the refund would be issued 24 hours after the vote was approved.

The total refund amount is 26.61 million DAI ($1/DAI) and 12.68 million FEI ($0.97/FEI). The refund process is underway, with voting via on-chain and instant flagging polls.

Joey Santoro explained their challenges in a Tweeter September 19. He encouraged other DAO ecosystems to learn from their experience. The CEO advised other DAOs not to dive into governance territory without conducting proper investigation and research.

DAO Tribe Offers Reimbursement to Victims of $80M Rari Attack
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