Rook’s well-funded subsidiary Incubator DAO is holding an election on its financial future, in which the organization may liquidate its entire $25 million treasury in exchange for direct payments to ROOK token holders.
Through Thursday, a referendum will consider a proposal to “rage quit” Incubator DAO by dividing its $25 million treasury among ROOK governance token holders. The poll is being orchestrated by activist investors who have debated Rook’s (an Ethereum-based MEV project) future on Discord for weeks.
Prior to the middle of 2021, ROOK owners had a voice in the Rook DAO (formerly known as KeeperDAO), the putative governing body that managed the Rook project. However, an entity called Rook Labs has taken over the day-to-day operations of Rook, causing friction among token holders who felt abandoned.
As a remedy, Rook Labs orchestrated a referendum to separate the ROOK token from the Rook initiative. The new organization, IncubatorDAO, received 60% of Rook’s funds for its own use. In exchange, ROOK owners forfeited all theoretical claims to Rook’s intellectual property and future profits.
Four outspoken Rook Labs opponents were elected to the Incubator DAO’s governance body on the platform of dissolving the company by converting its cryptocurrency treasury into stablecoins that ROOK owners can claim.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.