The TRIBE token is critical to the governance and success of the Tribe DAO. This proposal seeks to improve and expand TRIBE’s capabilities for Governance and utility in the Tribe ecosystem.
TRIBE is used to manage and protect PCV and the FEI peg. TRIBE can be used to backstop PCV in the event user FEI goes below an acceptable level. Additionally, buybacks from PCV equity further incentivize effective PCV management.
Currently, a large portion of TRIBE rewards go to FeiRari pool 8, and over 10% of the circulating TRIBE supply is locked there. There are a number of shortcomings with this approach, but the most obvious are:
- TRIBE locked in FeiRari can’t vote on DAO governance proposals or other protocol initiatives
- TRIBE locked in FeiRari isn’t autocompounding
To resolve the conflict of active governance participation and yield generation, this proposal introduces the xTRIBE token. xTRIBE effectively addresses those concerns as well as further empowers and incentivizes holders to participate in Tribe ecosystem:
Features of xTRIBE:
- Votable on the DAO with multi-delegation capabilities
- Autocompounding emissions
- Percentage of buybacks redirected to TRIBE holders
- Ability to direct emissions through a similar mechanism to Curve gauges or Tokemak reward direction. Note this does not include locking (vote-escrow like Curve), and xTRIBE will be a fully liquid extension of TRIBE.
- xTRIBE is ERC-4626 compatible, making it available as a plugin on Fuse and any other project that integrates the standard.
- Can be used as collateral in Turbo with the largest revenue share out of any token. Maximizing the productivity and utility of xTRIBE.
By improving alignment of governance and yield, and adopting the new vault standard for tokens, xTRIBE empowers TRIBE holders and increases participation in DAO governance.
Similar to xSUSHI, all rewards sent to the contract from fees are autocompounded for holders. xTRIBE leverages this mechanism and further improves upon it by distributing new rewards over a week instead of all at once to protect against MEV and other attacks (inspired by xERC20).
These rewards can come from buybacks and emissions and future products that plan to benefit xTRIBE holders.
The existing TRIBE in FeiRari pool 8 and RGT in pools 6 and 7 will be automatically upgraded to xTRIBE.
Like TRIBE, the voting delegation of xTRIBE will be non-transitive. I.e. you can’t re-delegate a delegation.
However, xTRIBE will introduce the concept of multi-delegation to allow greater governance participation. xTRIBE holders will be able to delegate their vote to multiple addresses as opposed to currently being able to delegate to only one.
Multi-delegation solves potential issues with single delegation where giant voting blocks of TRIBE can easily dominate the outcome of a vote. By creating a multi-delegation algorithm, aggregating contracts can easily “pass through” delegation rights to their holders.
For example, assume 1000 xTRIBE is allocated on the gauges, split 80/20 between fFEI-8 and fFEI-6 and the TRIBE per second is 50. In this scenario, 40 TRIBE per second will go to pool 8 and 10 will go to pool 6.
TRIBE holders will control the whitelist for gauge destinations. This can be extended to automated mechanisms in the future such as “most TRIBE staked” or some kind of TRIBE burning tribute.
The reward direction mechanism will be designed to be fully general and compatible with Fuse, so that new teams can apply their liquidity mining directly on top of the Fuse lending platform, either TRIBE or their own project token. This has the potential to kick off the “everything wars” where all new projects use emissions control to incentivize liquidity on top of Fuse.
xTRIBE will increase the voting accessibility, composability, capital efficiency, ease of use, and utility of TRIBE.
Can’t wait to hear more thoughts from the community on this proposal!