Investing in Tribe – Everything you need to know
The tribe functions as a governance token for the Fei Protocol. TRIBE holders have the right to vote on adjustments to the FEI stablecoin, including changes to its bond curve and other crucial updates. FEI is a direct incentive stablecoin. The project aims to reward users for use and commercial activity. As such, it became a popular project.
Tribe and the FEI protocol launched in early 2021. The network continues to grow in size following a merger with Rari Capital. The two projects merged after the communities voted on the measure. The merger officially took place at Ethereum block height 13850929. Today, FEI claims +$677,085,401 in protocol-controlled value.
What problems is Tribe trying to solve?
Tribe and the Fei Protocol are trying to address some pressing market issues. One of the main problems that the network alleviates is capital inefficiency. The majority of stablecoins on the market are either fiat or crypto. Encrypted projects operate using an over-provisioning system. This approach is necessary to ensure that the protocol works without trust.
Unfortunately, this strategy limits the growth capacity of these networks because any offer requires an excess of guarantee. The need for this overcollateralization stems from the desire to have a buffer to ensure that fluctuations in the underlying asset do not render the project insolvent.
Volatility is another problem that crypto users have to deal with on a regular basis. The crypto market is known for its strong fluctuations in value. Just last month, the market saw over $1.8 billion in funding suddenly exit after regulatory concerns including a potential cryptocurrency ban in Russia coupled with the threat of a potential war in Ukraine, raised concerns among investors. Notably, Russia has since toned down its rhetoric towards cryptocurrencies. However, this is not the first time the possibility of a crypto ban has driven prices down.
Tribe helps maintain FEI’s stability seamlessly through a community cash pool. FEI leverages additional smart contracts to maintain the coin’s value at $1. The system can automatically adjust the token’s reserve pool to ensure that the coin remains pegged to the dollar without the need to over-collateralize.
Tribe and the Fei protocol also help improve inefficiencies in the stablecoin market. Fiat or commodity-backed stablecoins require a third party to store and audit reserves to ensure they are equal to the amount of value issued in tokens. This requirement increases the cost of operating these projects and introduces centralization into the equation.
Tribe users get a better alternative. The system leverages blockchain technology to eliminate the cost of storing and securing a third-party asset. Instead, all transactions are performed on the public Ethereum blockchain, making them both secure and immutable.
Benefits of the Tribe (TRIBE)
Tribe has many advantages in the market. For one thing, the network helps bridge the gap between coins stabilized with fiat and crypto collateral. The network provides a decentralized alternative that is both scalable and open to third-party developer contributions to the ecosystem.
How does the tribe work?
TRIBE is an Ethereum-based governance community that relies on two strengths to achieve its goals. The first is the FEI stablecoin which provides users with a stable trading asset. The second is the TRIBE governance token which helps balance market volatility. These systems work in tandem with a price-controlled value component.
Price-controlled value is an essential part of the ecosystem. This mechanism is set up to algorithmically allocate assets to provide liquidity and earn yield. Notably, the Uniswap ETH/FEI liquidity pool is a community-owned reserve and any new FEI supply enters circulation via an ETH-denominated buy-only bond curve. The Fei protocol releases TRIBE for linked FEI/TRIBE Uniswap LP tokens. This approach can be described ascash backed” model.
TRIBE functions as a governance token. Governance tokens allow communities to make proposals to guide the direction of a platform. It is the only governance token for the Fei protocol at present. The digital asset functions as an ERC-20 compliant token that lives on the Ethereum blockchain with a supply capped at 1 billion coins throughout the life of the project.
FEI is a separate, decentralized stablecoin that operates a community reserve pool to hold value pegged to $1. FEI is unique in that it is always redeemable for its underlying asset, which makes it more liquid than other stablecoins in the market. The developers see FEI as an essential first step in fully decoupling the crypto market from fiat currencies.
TRIBE is a DAO (decentralized autonomous body) with community governance. DAOs allow communities to stay proactively involved in a project. Specifically, the token allows its users to vote on adding new bond curves for new tokens and adjust the price functions of existing curves. Users can also propose changes to the Protocol Controlled Value (PCV) allocation for incoming funding and existing PCV fees.
History of the tribe (TRIBE)
TRIBE entered the market in 2021 as a governance component for the larger Fei Protocol concept. The network was founded by Joey Santoro and Sebastian Delgado. They also operate as the founders of Fei Labs which is the development team behind the project.
TRIBAL governance in 2022
The TRIBE concept demonstrates how multi-token stablecoins continue to offer more freedom to investors. These projects incorporate stability, security, and community inclusion that make them ideal for anyone looking to have more say in their financial future. You can expect to see a lot more from Fei Protocol and TRIBE token holders as the network continues to grow in 2022.