Tribe (TRIBE) - the FEI algorithmic stablecoin governance token. Fei aims to provide a new decentralized solution for the stablecoin market. The governance engine forks a DAO whose owners can delegate votes.
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What is Tribe (TRIBE)?
The Fei Protocol DAO will be able to function as a DeFi central bank. It can use PCV to adjust rates and market incentives on other platforms. This creates a dynamic ecosystem around the FEI. The TRIBE supply will be fixed at 1 billion tokens, divided into several categories. The first category is the FEI staking pool. FEI holders can stake FEI / TRIBE Uniswap LP tokens to earn a percentage of the distribution of TRIBE. Rewards will flow into the pool on a linearly decreasing schedule. The release will collapse to zero in 2 years. The staking pool has three goals:
| Safety | Access to TRIBE for early FEI holders. |
| Code | The way the FEI is deployed, not statically held. |
| Fee | More liquidity for TRIBE. |
The other part of the TRIBE offering is allocated to a special group of early adopters, known as the Genesis Group. Genesis Group will be open for 2-3 days, during which time investors can pool their ETH.
What makes a project unique?
The FEI has identified the capital inefficiency of crypto-companion stablecoins and the “hired capital” phenomenon as a major impediment to the development of a fully decentralized stablecoin. The first implies that more capital needs to be deployed than can enter the system, which by design limits the growth potential of the system, using crypto-stablecoins. In addition, coins like DAI suffer from the fact that liquidity providers are always on the hunt for the best yield and have a limited amount of autonomy.
The FEI introduces the concept of Product Driven Value (PCV). The DAO project that runs the stablecoin issued FEI at a subsidized rate for Ether at launch to create an Ether pool as its treasury. The project staked some of that ETH with freshly minted FEI in the ETH-FEI liquidity pool on Uniswap to enable trading of the stablecoin. While users can buy FEI from Tribe DAO, they cannot sell FEI back to it, but must sell FEI on the open market. Stability is maintained through an incentive system. If the FEI price is high, arbitrageurs can sell ETH to the DAO project and sell their FEI on Uniswap to make a profit.
If the price is low, the additional incentives set come into play. The company simply acts as a governing body with the following functions:
- assignment of Minter and Burner contracts;
- adjusting the scale target and distribution rule;
- regulation of growth rate of promotional weight;
- percentage reward for restoring binding by weight.
FEI buyers in Uniswap's liquidity pool receive a price recovery rebate, while sellers must pay this rebate and an excess penalty to incentivize recovery peg. Tribe can use its Ether reserves to buy back FEIs and burn excess FEIs to reduce supplies in a pinch.
TRIBE tokenomics
The total offer of TRIBE is 1 billion. TRIBE's current circulating supply is 415 million. 80% is distributed among the DAO, 15% - to the team for 5 years and 5% - to investors with a linear time-lock. The best cryptocurrency exchanges to trade Tribe shares currently are Binance, Mandala Exchange, Bybit, KuCoin and Huobi Global.
TRIBE and FEI are ERC-20 tokens on Ethereum. ERC-20 is the token standard that most new tokens follow when published on the Ethereum blockchain. Ethereum is one of the most popular DAO blockchains and is protected by a proof-of-work consensus mechanism that requires miners to mine new ether. A set of decentralized nodes verify transactions and secure the Ethereum blockchain.
Following its public launch, Tribe briefly stopped trading in the stablecoin to fix a security breach that would have allowed attackers to withdraw a significant amount of ETH from Uniswap's ETH-FEI pool. The violation was corrected before any damage was done.