Why Rook Labs Decided to Split Their Treasury Assets

On April 11th, Rook Labs, the development entity of the MEV project Rook, initiated a community proposal vote, planning to split nearly $50 million in treasury assets into two parts, to be allocated to the main builders of Rook technology and a new community operating entity called Incubator DAO. Among them, the Incubator DAO will replace the original decentralized operating entity Rook DAO, which will be completely independent of Rook and can decide how to use nearly $25 million in funds.

MEV project ROOK plans to split $50 million equally between technology developers and operational entity Incubator DAO

Introduction

On April 11th, 2021, Rook Labs initiated a community proposal vote to split nearly $50 million in treasury assets into two parts. The objective was to allocate the funds to the main builders of Rook technology and a new community operating entity called Incubator DAO. This split has been met with mixed reactions within the community. In this article, we will explain why Rook Labs decided to split their treasury assets and how it will affect the Rook ecosystem.

Reasons Behind the Split

Rook Labs’ decision to split the treasury assets is rooted in the desire to better focus on the development of the Rook ecosystem. The decentralized operating entity Rook DAO will be replaced by Incubator DAO, which will have complete independence to decide how to use nearly $25 million in funds. By creating a dedicated operating entity, Rook Labs hopes to empower the Rook community to invest in projects that will drive the ecosystem forward without the need for centralization.
Additionally, the split is seen as a way to incentivize the builders of Rook technology. Rook Labs has vowed to make a significant investment in the developers and creators who contribute directly to Rook’s technology stack. The goal is to fund vital research and development that will drive innovation in the Rook ecosystem.

Incubator DAO

Incubator DAO is a new community-operated entity that will take the place of Rook DAO once the split is complete. It will be tasked with selecting and funding projects that will help grow the Rook ecosystem. Incubator DAO will be a community-led entity that allows anyone who holds Rook tokens to vote on proposals.
This way, the community will have a meaningful say in where their funds are being used. The idea behind Incubator DAO is to provide Rook Labs with the ability to allocate the necessary resources for critical projects without the need for centralized control.

What Does This Mean for the Rook Ecosystem?

The splitting of treasury assets and the creation of Incubator DAO has the potential to drive innovation in the Rook ecosystem. The massive investment in developers and creators will attract talent and streamline the development process.
Moreover, the creation of Incubator DAO will empower the Rook community to invest in the projects that they believe will most benefit the ecosystem. This move towards decentralization and community-driven decision-making has the potential to keep Rook Labs agile and competitive in a rapidly changing market.

Conclusion

In conclusion, the splitting of Rook Labs’ treasury assets has been met with mixed reactions within the community. However, the move towards decentralization and community-led decision-making could be a significant step forward for the Rook ecosystem. The investment in developers and creators and the community’s ability to choose where their funds go are exciting developments for the decentralized finance world.

FAQs

Q: What is the Rook ecosystem?
A: The Rook ecosystem is a decentralized finance project that aims to improve blockchain-based financial systems.
Q: Why did Rook Labs create Incubator DAO?
A: To empower the community to invest in the projects that they believe will most benefit the ecosystem.
Q: Is the Rook ecosystem completely decentralized?
A: Yes, the system operates on a decentralized finance platform where all critical decision-making is made through community-driven decision-making.