Fei Protocol founder proposes ghosting Tribe DAO following hack repayment

An attack in April 2022, which drained nearly $ 80 million from various Rari Fuse pools, required decentralized finance platform (DeFi) Fei Protocol to find a solution that minimized damage to the ecosystem. Fei Labs’ latest proposal, which partially recommends withdrawing participation in Tribe DAO, has received mixed feelings from the community.

Fei Protocol founder Joey Santoro announced the latest proposal, TIP-121: Proposal for the Future of Tribe DAO, revealing the company’s intention to reimburse the victims of Fuze. He also details asset redemption plans and protocol-controlled value (PCV) asset distribution that manage liquidity and yield.

Community members questioned the lack of concrete timing and numbers within the proposal.

A fragment of the TIP-121 proposal. Source: tribù.fei.money

One of the members, onigiri, said:

“I think the trust has been broken and I can’t believe that such a vague proposal likely overlooked by an army of bloodthirsty lawyers will be in the users’ favor.”

The Fei protocol previously offered the hacker a $ 10 million bounty for the return of assets worth $ 80 million, which received no response from the hacker.

While seeking responsible management that reduces risk, the protocol intends to defend the EIF peg without the need for governance. “Upon completion of this proposal, and regardless of whether individual pieces fail or succeed, Fei Labs will no longer participate in Tribe DAO,” the proposal reads.

Related: BlueBenx fires employees, stops withdrawing funds citing a $ 32 million hack

On the bright side, the Ethereum-based algorithmic stablecoin project Beanstalk Farms was relaunched just four months after closing following a $ 77 million governance exploit.

“Beanstalk came out on the other side of this ordeal stronger than ever. It’s a testament to the protocol’s creditworthiness and its potential to help realize a permissionless future, ”Publius, the developer group behind the stablecoin and BEAN protocol, told Cointelegraph.