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About Tribe
Key Points:
- Tribe (TRIBE) is the governance token for the FEI algorithmic stablecoin.
- FEI aims to provide a decentralized solution to the stablecoin market.
- Tribe is run as a DAO, governed by its community in a fully decentralized manner.
- FEI introduces the concept of product-controlled value (PCV).
- The total supply of TRIBE is 1 billion, with 415 million currently in circulation.
- TRIBE is available on UniSwapV2, Binance, Huobi, Coinbase, and Gate.io.
Numbers and Figures:
- 1 billion
About Tribe: Empowering a Decentralized Future
Introducing Tribe (TRIBE): A Comprehensive Overview
Tribe is the governance token for the FEI algorithmic stablecoin, a novel decentralized solution poised to revolutionize the stablecoin market. Existing stablecoins are plagued by limitations, being either fiat-collateralized and thus centralized, or crypto-collateralized, resulting in capital inefficiencies. Other algorithmic stablecoins suffer from a lack of liquidity backing the peg, rendering them inherently unstable, or centralize rewards to seigniorage stakeholders. FEI proposes a paradigm shift, drawing inspiration from fractional reserve central banking. At its genesis event, the protocol issues FEI at a subsidized price against ETH, subsequently utilizing the incurred Ether as a treasury to maintain the peg. TRIBE, the governance token of the DAO, oversees the governance of FEI and can be utilized in governance proposals or swapped for FEI in a UniSwapV2 liquidity pool.
The Visionary Founders Behind Tribe
Tribe operates as a decentralized autonomous organization (DAO), where governance is exercised by its community through the implementation of smart contracts, ensuring a fully decentralized framework. The Fei stablecoin, governed by the DAO, was founded by a team of innovators from the Bay Area, comprising Joey Santoro, Brianna Montgomery, and Sebastian Delgado, and officially launched in March 2021. Santoro, the CEO of Fei Labs, brings a strong technical background as a former software engineer at Okta Inc, holding a degree in computer science from Duke University. Montgomery, the project’s business lead, leveraged her experience at ConsenSys, a prominent blockchain studio, prior to joining Fei Labs. Delgado, with a background in DeFi, served over two years at Dharma Labs and is a graduate of UC Berkeley. Notably, Fei Labs has secured backing from esteemed venture capital funds, including Andreessen Horowitz and Coinbase Ventures.
Tribe’s Distinctive Edge: A Unique Proposition
Fei pinpointed the capital inefficiency inherent in crypto-collateralized stablecoins and the “mercenary capital” phenomenon as the primary hurdles to designing a fully decentralized stablecoin. The former implies that a disproportionate amount of capital must be deployed relative to the amount that can enter the system, thereby limiting by design the growth potential of a system reliant on crypto-backed stablecoins. Moreover, coins like DAI are plagued by liquidity providers perpetually seeking the highest yield, which consequently restricts their autonomy.
FEI pioneers the concept of product-controlled value (PCV), a novel approach to decentralized finance. At its inception, the Tribe DAO governing the stablecoin issued FEI at a subsidized rate for Ether, thereby accumulating a treasury of Ether. Subsequently, Tribe allocated a portion of this ETH to create an ETH-FEI liquidity pool on Uniswap, facilitating the trading of the stablecoin. While users are able to purchase FEI directly from the Tribe DAO, they are not permitted to sell FEI back to the DAO, instead relying on the open market for liquidity. The stability of FEI is maintained through a sophisticated incentive system. In the event that the price of FEI surpasses its peg, arbitrageurs are incentivized to sell ETH to the Tribe DAO and subsequently sell their FEI on Uniswap, thereby generating a profit.
If the price falls below the peg, the incentives implemented by Tribe are triggered.
In the Uniswap liquidity pool, FEI buyers receive a rebate to restore the peg,
while sellers are required to pay this rebate, accompanied by an excess penalty,
thus incentivizing the restoration of the peg. The greater the deviation of FEI’s price from the peg,
the more substantial the rebates and penalties, rendering it highly unprofitable for sellers to offload discounted FEI.
As a last resort, Tribe can utilize its Ether reserves to repurchase FEI and burn excess FEI, thereby reducing supply.
Tribe essentially functions as a governing body, overseeing the following functions:
- Establish Minter and Burner contracts, incorporating novel bonding curves
- Calibrate Scale targets and allocation rules governing bonding curves
- Refine the time-weighted growth rate of incentives
- Determine the percentage reward for reweight peg restoration
- Implement reweighting of any Uniswap pools pegged to the aforementioned
What Is the Circulating Supply of Tribe (TRIBE) Coins?
The total supply of TRIBE is capped at 1 billion. The current circulating supply of TRIBE stands at 415 million. The allocation of TRIBE is as follows: 80% is reserved for the DAO, 15% is allocated to the team, subject to a back-weighted time-lock of five years, and 5% is designated for investors, with a linear time-lock mechanism in place.
The Security Framework of the Tribe Network: A Robust Defense Mechanism
TRIBE and FEI are both ERC-20 tokens operating on the Ethereum blockchain. The network is decentralized and self-governed as a DAO, comprising diverse roles, including governors, minters, burners, PCV controllers, and guardians, all of which are subject to community governance.
ERC-20 is the token standard of choice for the majority of newly minted tokens debuting on the Ethereum blockchain. As one of the most popular blockchain platforms for decentralized autonomous organizations (DAOs), Ethereum relies on a proof-of-work consensus mechanism, which necessitates the mining of new Ether by miners. A network of decentralized nodes is responsible for validating transactions and ensuring the integrity of the Ethereum blockchain.
Following its public debut, Tribe temporarily suspended trading of the stablecoin to address a security vulnerability that could have enabled attackers to drain a substantial amount of ETH from the ETH-FEI Uniswap pool. Fortunately, the breach was swiftly remedied before any harm was inflicted.
Tribe Trading: Anticipated Launch Timeline
Treibe officially debuted on March 31, 2021, on the UniSwapV2 platform.
Acquiring Tribe (TRIBE): A Comprehensive Guide to Exchanges and Marketplaces
TRIBE is proudly listed on esteemed exchanges, including UniSwapV2, Binance, Huobi, Coinbase, and Gate.io, ensuring seamless accessibility for users worldwide.
Associated Resources:
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