A profound shift in power levels for Rook, a cryptocurrency project builder capturing maximum extractable value (MEV) on Ethereum, is about to be announced.
The vote, which ended Tuesday, aimed to separate the project’s technology from its governance token. The proposal, authored by Rook Labs, envisions halving Rook’s nearly $50 million in crypto assets, on the one hand as the lead builder of Rook’s technology, and on the other as a cooperative operator of a new community-driven entity called the Incubator DAO.
After weeks of debate on Discord, the proposal strikes a compromise between groups wanting to build unhindered and holders who feel neglected — despite their nominal governance rights. Rook DAO, the Decentralized Autonomous Organization (DAO) behind Rook, hasn’t had much to manage for over a year.
According to public announcements and plans, Incubator DAO will completely replace Rook DAO. It will be completely independent of Rook, which means its members will decide everything from the project’s name to how to spend the nearly $25 million. The project called Rook — building technology to capture MEV, or value, from the ethereum transaction chain — will continue to be managed by Rook Labs, with multisigers controlling the remaining treasury.
In addition to receiving half of Rook’s funding, the Incubator DAO will inherit the unique representative democratic structure of the old DAO. It relied on four elected “sophons” to review proposals, and new elections were held. All four winners backed plans to return $25 million to token holders.
“Given the governance process of Rook DAO and the inability to accumulate value for ROOK tokens, I think this is the best compromise we can make for token holders,” analyst Wismerhill said. Sophons in the new DAO.
“It’s a win-win solution,” Wismerhill added. “Rook Labs has enough capital to develop the product, and holders don’t need to hold worthless governance tokens that are gradually being ignored by the protocol.”
The token itself has nearly tripled in value since late March, when Hazard, the anonymous CEO of Rook Labs, told The DAO he could not share the project’s roadmap. At press time, it was trading at over $41, up 10% over the past 24 hours.
ROOK’s rising token price and debate over the project’s future attracted investors from all walks of life, some of whom voted with newly purchased tokens. In the vote to create the incubator DAO, the largest “yes” vote – nearly 15,000 ROOK – was cast from a wallet controlled internally by the TempleDAO project.
Lux.Temple, head of TempleDAO, said: “We hope to see a solution that allows the Rook team to continue their important work peacefully within a unified community.”
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According to CoinDesk