Tribe TRIBE Price 0.35704605

The governance token is called Tribe. A new solution is needed for the stable coin market. Stable coins are capital-inefficient if they are centralized. Stable coins that do not have a liquid peg are inherently unstable or have a centralized rewards to seigniorage stakeholders. A model similar to fractional reserve central banking is proposed, where the protocol issues FEI for a subsidized price against ETH at its genesis event, and then uses the incurred Ether as a treasury to maintain the peg. The team of Bay Area residents who founded the Fei stable coin are Joey Santoro, Brianna Montgomery, and Sebastian Delgado. A software engineer at Okta Inc., Santoro received a degree in computer science from Duke University. Before working at ConsenSys, Montgomery was involved with the project. The capital inefficiency of stable coins and the mercenary capital phenomenon are the main obstacles to designing a stable coin. The former implies that more capital has to be deployed than can enter the system, which limits the growth potential of a system using stable coins. At the launch of the stable coin, the Tribe DAO issued FEI at a subsidized rate for ether in order to generate a pool of ether as its treasury. Tribe supplied a part of the stable coin with freshly minted FEI in an ETH-FEI liquidity pool on Uni swap to enable trading of the stable coin. Users can buy FEI from the Tribe DAO, but they can't sell it back to it, so they have to sell it on the open market. If the price is below the peg, the incentives Tribe installed come into play. Buyers in the Uni swap pool get a rebate to restore the peg, but sellers have to pay an excess penalty to make it happen. The bigger the penalties, the more unprofitable it is for sellers to sell discounted FEI. As a last resort, the tribe can burn excess FEI. The scale target and allocation rule should be adjusted. The growth rate should be adjusted. There is a reward for reweight peg restoration. There are pages related to this.