Investing In Tribe (TRIBE) – Everything You Need to Know
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Table Of Contents
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 bonding curve and other crucial updates. The project seeks to reward users for usage and trading activity. As such, it’s grown into a popular project.
Tribe and the FEI Protocol launched in early 2021 as a direct incentive stablecoin. However, direct incentives are no longer part of the protocol. TRIBE holders voted to remove them in FIP2. Despite the changes, the network continues to grow in size following a merger with Rari Capital.
The projects merged after the communities voted on the measure. The merger officially took place at Ethereum block height 13850929. Today, FEI boasts +$677,085,401 in protocol controlled value.
What Problems Does Tribe Attempt to Fix?
Tribe and the Fei Protocol attempt to fix some pressing issues in the market. One of the main problems the network alleviates is capital inefficiency. The majority of stablecoins in the market are fiat or crypto-backed. The crypto-backed projects function using a system of over-collateralization. This approach is necessary to ensure the protocol operates in a trustless manner.
Sadly, this strategy limits the ability of these networks to grow because all supply requires an excess of collateral. The need for this over-collateralization stems from the desire to have a buffer to ensure fluctuations in the underlying asset don’t make the project insolvent.
Volatility is another issue that crypto users must contend with on a regular basis. The crypto market is known for its wild swings in value. Just last month, the market saw over $1.8 billion in funding suddenly exit after regulatory concerns, including a potential ban of cryptocurrencies in Russia coupled with the threat of a potential war in Ukraine sparked investor concerns. Notably, Russia has since toned down its rhetoric towards cryptocurrencies. However, it’s not the first time that the possibility of a crypto ban sent prices declining.
Tribe helps to maintain the stability of FEI in a transparent manner via a community treasury pool. FEI leverages additional smart contracts to keep the coin's value at $1. The system can automatically adjust the token's reserve pool to ensure the coin remains pegged to the dollar without the need to over-collateralize.
Tribe and the Fei Protocol also help to improve inefficiencies in the stablecoin market. Fiat or commodity-backed stablecoins require a third party to store and audit the reserves to ensure they equal the amount of value issued in tokens. This requirement raises the cost of operating these projects and introduces centralization into the equation.
Tribe users enjoy a better alternative. The system leverages blockchain technology to eliminate the cost of storing and securing a third-party asset. Instead, all transactions are conducted on the Ethereum public blockchain which makes them both secure and immutable.
Benefits of Tribe (TRIBE)
There are a lot of benefits that Tribe introduces to the market. For one, the network helps to bridge the gap between coins stabilized with fiat vs crypto collateral. The network provides a decentralized alternative that is both scalable and open to third-party developer contributions to the ecosystem.
How Does Tribe Work?
TRIBE is an Ethereum-based governance community that leverages two assets to complete its goals. The first is the FEI stable coin which provides users with a stable trading asset. The second is the TRIBE governance token which helps to balance market volatility. These systems work in tandem with a price-controlled value component.
The price-controlled value is a critical 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 supply of FEI enters circulation via a buy-only bonding curve denominated in ETH. The Fei Protocol releases TRIBE to bonded FEI/TRIBE Uniswap LP tokens. This approach can be categorized as a “liquidity-collateralized” model.
TRIBE operates as a governance token. Governance tokens enable communities to put forth proposals to steer the direction of a platform. It's the only governance token for the Fei protocol at this time. The digital asset operates as an ERC-20 compliant token that lives on the Ethereum blockchain with a capped supply of 1 billion coins throughout the life of the project.
FEI is a separate, decentralized stablecoin that leverages a community reserve pool to retain a value pegged to $1. FEI is unique in that it is always redeemable for its underlying asset making it more liquid than other stablecoins in the market. The developers see FEI as a vital first step in decoupling the crypto market from fiat currencies altogether.
TRIBE is a community governance DAO (decentralized autonomous organization). DAOs enable communities to remain proactively involves in a project. Specifically, the token enables its users to vote on adding new bonding curves for new tokens and adjusting the price functions of existing curves. Users can also propose alterations to the Protocol Controlled Value (PCV) allocation for both incoming funding and existing PCV fees.
History of 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.
How to Buy Tribe (TRIBE)
Tribe (TRIBE) is available on the following exchanges:
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
TRIBAL Governance in 2022
The TRIBE concept demonstrates how multi-token stablecoins continue to provide more investor freedom. These projects integrate stability, security, and community inclusion that make them ideal for anyone seeking more say in their financial future. You can expect to see a lot more from the Fei Protocol and TRIBE token holders as the network continues to expand in 2022.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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