TIP-121: Proposal for the future of the Tribe DAO

Blacksage/Buckerino from the Uniswap Community over here.

I wanted to chip in with a couple of points. First of all, the past actions of the dev team regarding the payback of the hack victims was a mess. It was a mess, but it was not an illegal mess. Immoral? Sure, very much so.

However, reading this proposal raises some serious concerns regarding what legal liability the core developers might be forcing upon themselves. All the people who have mentioned the hack victims as creditors - this is pure non-sense. Fitting an incredibly specific term with a narrow definition onto the hack situation will not be upheld in any court.

On the other hand, the core developers might be exposing themselves to different types of lawsuits as there are glaring gaps which could be exploited by any capable lawyer out there.

It could be argued that the core developers of the protocols owe fiduciary duties against multiple stakeholders. This primarily concerns investors, but could extent to customers as well. Ignoring audit complaints, not publishing specific data upon which you base this proposal, and the lack of communication could all be construed as the core developer team is not acting in, “good faith” neglecting their fiduciary duties owed to the protocol and the stakeholders.

Also, another major sticking point could be the law concept of, “unjust enrichment”. This has been applied in some recent court cases in crypto hacks. Having a lawsuit based on such accusations could be also more easily proven given the allegations of insider trading shortly before this proposal hit the forums. Arguing the devs are trying to enrich themselves in an unjust manner given the recent hacks, the ample funds to wind down with dignity, and the suspicious trades could prove to be more trivial than you think.

My advice to the devs would be to make the victims whole, sell the tokens, and wind it down with whatever honor there is left on the table. There is no reason to be drawn into a long legal court battle where the odds are (most likely) stacked against you. Oh, and I forgot to add that there CERTAINLY WILL be a lawsuit if it passes in its current form.