Since reading Joey’s and Jai’s proposal to merge Rari Capital and Fei Protocol, the team at GFX Labs has been excited by the historic idea of the first-ever merge of two DAOs. Over the last two weeks, GFX Labs has developed a comprehensive plan to facilitate the proposed merger. The attached document describes the terms of the merger in detail. The following is a brief overview.
Once the merger takes place, Rari Capital protocol governance will become fully integrated with Tribe and its TRIBE governance token. There are three major components of the merger.
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Adminship Transfer
Rari Capital’s smart contracts will have their admin role transferred to Tribe.
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Exchange of RGT to TRIBE
RGT will be exchanged for TRIBE at a rate of 26.705673 TRIBE per RGT. The rate is equal to the ratio of 7-day TWAPs (blocks 13653498 to 13697660) of RGT and TRIBE. Anyone who holds RGT will be able to swap their RGT for TRIBE by interacting with the PegExchanger contract.
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TRIBE Ragequit
Anyone who held TRIBE at the Snapshot Block (13623378) will be able to exchange their TRIBE for FEI, up to the amount of TRIBE they held at the Snapshot Block. Each TRIBE will be exchanged for \frac{Protocol \,Equity}{619,605,725.325389147} FEI. Protocol Equity is defined as Protocol Controlled Value (PCV) net of User Circulating FEI, and both are evaluated at the block in which the exchange takes place. The denominator is the circulating supply of TRIBE at block 13697660, given by the maximum supply of TRIBE (1,000,000,000) net of the balance of TRIBE in the Tribe Treasury (291,025,163.276474189338679350) and the balance of TRIBE allocated for liquidity mining (89,369,111.39813669). Eligible TRIBE holders will be able to swap their TRIBE for FEI by interacting with the
TribeRagequitcontract.
The merger will be executed via two on-chain proposals - one to be voted on by Tribe governance and another by Rari governance. Once both proposals are executed, Tribe will assume administration of Rari Capital’s smart contracts, and users will be able to interact with PegExchanger and TribeRagequit.
The PegExchanger contract, TribeRagequit contract, and governance proposals are going to Code Arena for review this afternoon.
To develop the best possible proposal and communicate our decisions, we will be answering questions and taking feedback on the forum and the next community call. We look forward to hearing feedback from both Tribe and Rari communities.
The information here and on our document is for informational purposes only and in a draft state. We anticipate incorporating further community input.
PDF: https://gfxlabs.io/docs/draft_fei_rari_merger.pdf
We want to thank the Reverie and Llama teams for their help and feedback throughout this process.