RARI Capital launched a compensation plan: 2 million RGT set aside by the team will be returned to DAO to cover the loss
RARI Capital will return 2 million RGTs reserved for team expansion to DAO to compensate affected users and reward contributors, the company said in an official statement on May 10.
Back on May 8, Ethereum's revenue aggregation protocol, Rari Capital, lost about $10 million (2600 ETH) due to a bug that integrated Alpha Finance.
On May 10, RARI Capital responded to the hack. The team introduced RIP-1 nearly five months ago to provide the tools needed to extend the protocol: a liquidity initiative and RGT for developer incentives, the statement said. Of this, 2 million RGTs were set aside to expand the team.
In order to compensate for the loss, the statement said that all of the team's protocol contributors have chosen to return the 2 million RGTs to the DAO in order to recoup the money lost in the breach and to reward those contributors for their assistance in the breach.
Currently, the team hasn't sold a single token or raised a single penny from VCs because the team wants the agreement to be completely user-controlled, according to the company. According to the statement, the DAOs currently represent only 1% of RGT's supply, and do not have the power to easily save the platform's users.
The statement added that the returned tokens would fully cover the loss, and that the DAO could keep the remaining RGT tokens. Contributors who want to work on the protocol in the future can request RGT allocations from the DAO starting now.
For future improvements, RARI Capital states that it will soon roll out on-chain governance and implement the following steps starting today:
1. Start RIP-1, and the tokens allocated by the RARI Capital team will be merged into the project "Vaults". The proposal would be retroactive to the date of its approval, meaning that most of the tokens would be unlocked at the start for refunds and compensation.
2. Suggestions to DAO on how to compensate (one-time, acquired, price, etc.....) After listening to everyone's ideas in the community, we will post them on the forum in the coming days.
3. Everyone (assuming the DAO can agree to the solution) is compensated.
4. No more RARI Capital team, only Agreement Contributors. Team members are just as important as any other token holder. If contributors want to be rewarded for their work, they need to ask the protocol management.
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