CEO Rari Resigns, Fei-Rari Alliance Is In Danger Of Disbanding
This morning, CEO Jai Bhavnani of Rari Capital posted an official announcement of leaving his current position. However, before that, the Tribe DAO community also made many moves to stop vesting for partners from Rari, a move that sparked an immediate collapse of this alliance.
At the end of December 2021, Fei and Rari officially approved the proposal to merge the two projects. At the time, these were two notable projects and were an important part of the DeFi 2.0 wave.
Tribe is the governance coin for the FEI stablecoin system. Meanwhile, Rari Capital is a new generation yield-generating solution, helping users take advantage of higher interest rates on stablecoin assets. This merger seems to have ushered in a new cycle, with scaling applications for decentralized stablecoin assets.
At the end of April, Rari Fuse (lending product segment) of this alliance was visited by hackers, causing losses at this stage up to $80 million.
Recently, Tribe DAO has also proposed to reimburse the amount of damage in the above attack.
This morning (June 12), the CEO of Rari Capital published an article announcing his departure. Specifically, Jai Bhavnani shared about the process of building Rari and thanked the Tribe community for the cooperation relationship in the past time.
Not stopping there, Mr. Jai Bhavnani stated the reason for his resignation and also pointed out some points that DeFi needs to overcome:
- Many current crypto projects are only built for the purpose of releasing coins to investors.
- Most projects do not have the goal of large-scale acceptance, but only a small community.
- Most tokens will be reduced to 0 when there is no practical use, the use of tokens to participate in governance has been overestimated.
- His involvement in Rari/Fei will not work as the Rari ecosystem matures.
This move has led the Tribe team to decide to delay vesting tokens for the founders of Rari. A post from Tribe says that 80% of Rari’s team and 100% of its technical staff have “changed their minds” since the merger announcement in December last year.
This new proposal is partly to fix technical errors in the vesting time of the old contract, a more important part is to recover the amount of Tribe vesting of Jai Bhavnani and David Lucid.
The above move is said to be the latest rift in the relationship between Fei and Rari, when both projects have encountered many problems after the merger date.
The price of TRIBE has fallen dramatically from the beginning of 2022 until now, with a 24-hour trading volume of just over half a million USD.
Many other DeFi projects in the past time such as Lido, Fei Protocol, and Frax have all announced proposals to change the project’s funds to prepare for the “crypto winter”. Last week also witnessed a series of DeFi events happening in the market, involving many big-name projects.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews