After the demise of Rook DAO, ROOK token holders can now claim the riches of the defunct governing body’s treasury. The former governance token is now a ticket to redeem approximately $25 million from Rook DAO’s treasury. The treasury is now under the control of Incubator DAO, a new entity run by activist investors who demanded Rook Labs return value to token holders. Rook Labs, the builders of Rook’s MEV technology and de facto operators of the project, eventually obliged and divorced ROOK, the token, from Rook the project. They bought out token holders’ governing rights for about 60% of the treasury. ROOK holders have 90 days to redeem their tokens through the smart contract and get a pro rata share of USDC, plus a pROOK token. The remaining USDC will be split among pROOK token holders.
Rook Labs’ pseudonymous CEO Hazard said in a Discord message that the process was dynamic and collaborative, designed to accommodate the community’s wishes for the ROOK token and the new Incubator DAO. He expressed gratitude for the enthusiastic participation of ROOK holders and community members and is pleased to see the token holders of Incubator DAO exercising their new autonomy. Rook Labs will move forward with their objective of building innovative MEV infrastructure, operating within the bounds of real-world legal and regulatory frameworks and business imperatives.
Wismerhill, the Carl Icahn incarnate who leads the activist wing and now Incubator DAO, told CoinDesk that he was glad all sides reached an amicable agreement. He believes this is the greatest outcome everyone could expect. Token-holders can unlock their ownership of the treasury, and the Rook Labs team can continue working on exciting projects without the burden of a worthless governance token.
The move to redeem the treasury comes after Rook DAO faced significant challenges. The project’s token holders had to vote on several proposals, including whether to dissolve the DAO, after the project faced a series of setbacks. Rook DAO’s troubles began after a hack in February 2021, which resulted in the loss of $7.7 million in ETH. The hack was followed by a series of issues, including a failed merger with another project, which led to a loss of confidence in the project.
In June 2021, Rook DAO’s token holders voted to dissolve the DAO and liquidate its assets. The move was an attempt to return value to token holders, who had seen the value of their tokens plummet after the hack. Rook Labs, the builders of Rook’s MEV technology, agreed to buy out token holders’ governing rights for about 60% of the treasury, effectively divorcing ROOK, the token, from Rook the project.
The move to redeem the treasury is a significant step for ROOK token holders, who have been waiting for the opportunity to claim their share of the treasury. It is also a significant step for Rook Labs, who can now focus on building innovative MEV infrastructure without the burden of a governance token. The move is expected to be a win-win for all parties involved, and it will be interesting to see how the new entity, Incubator DAO, will use the funds to create value for its token holders.