What is kumafarre?

Solution 1:

It's a reference to the Nicofarre night club. The place was originally called Velfarre, before it shut down and was reopened by Nico Nico, the japanese equivalent of YouTube; hence its new name, Nicofarre. Since this is Monokuma's Nicofarre, we end up with Kumafarre.

As for why this club in particular is referenced, this article makes it pretty clear:

As blog Asajin points out, Nicofarre has five LED wallscreens that can project comments into the crowd. That is, people can comment during a concert, and said comment should appear on a screen in the club.

Source: Legendary Japanese Club Reborn with Trolling — Kotaku