What is Tribe? Token governance based on Ethereum managing Fei Protocol

Tokens are value units developed on existing blockchain networks. Tokens can represent tangible assets (e.g. art, real estate) or intangible assets (e.g. data storage, processing power). Tokens can also be used in decentralized financial mechanisms (DeFi), such as protocol governance for voting on parameters, which can impact the blockchain network.

This article will take you through the TRIBE token and all its related details to help you decide whether this token is a good investment for you or not.

First, let’s take a look at some basic concepts.

What is Ethereum?

Ethereum is an open and completely decentralized computing platform built on blockchain technology. Using the Ethereum network, developers can create various cryptocurrencies and other digital applications, such as TRIBE.

What is Token Tribe (TRIBE)?

Token Tribe is the governance token of the Fei protocol. This protocol aims to maintain a liquidity market where its stablecoin, FEI, can trade close to the ETH/USD price. TRIBE holders can:

• Vote to add bonding curve for new tokens
• Adjust the price functions of existing curves
• Adjust the allocation of Protocol Control Value (PCV) for new funding sources or existing PCV fees.

What is governance token?

Governance tokens are special tokens that provide holders with the ability to influence decisions related to:

• Core protocol (e.g., changing block size or inflation rate)
• Product roadmap or feature (e.g. adding or removing features of a cryptocurrency asset)
• Recruitment and personnel
• Change the management parameters on the blockchain network
• List of assets and risk parameters for the currency market
• Transaction fee for decentralized exchanges

The goal of using governance tokens is to actively involve the blockchain community in core decision-making processes. The multi-signature smart contract feature of the governance platform also includes a delay period. This allows those who disagree with the decisions made to detach from the protocol and token if they wish. This delay prevents administrators or bad actors from making any changes to protocol parameters without community consensus. At a minimum, it creates enough buffer time to avoid imposed changes.

Who founded TRIBE?

Joey Santoro, Brianna Montgomery, and Sebastian Delgado initiated the decentralized stablecoin platform Fei. Santoro and Delgado are the founders and co-founders of the Fei protocol. Santoro is the CEO and Montgomery is the head of business at Fei Labs. With extensive experience in the cryptocurrency field, these three co-founders form the main pillars of TRIBE and Fei Labs.

TRIBE and FEI

As a governance token, TRIBE can influence decisions related to the Fei protocol, launched in early 2021. Its goal is to create a reliable stablecoin, aiming to narrow the gap between fiat-backed stablecoins and asset-backed digital currencies.

The Fei protocol operates based on two crypto assets: the stablecoin FEI (to maintain the peg) and the governance token TRIBE (to balance volatility). TRIBE holders have the right to vote on adjustments to the stablecoin FEI.

Conclusion

As the blockchain industry develops, the number of digital assets and unique tokens will also increase to meet the growing demands of blockchain network participants.

In summary, the process of buying, storing and trading with the TRIBE token is very simple. In addition, market analysis also provides positive outlooks on the future value of this token. Trade with confidence but also caution.