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Creation of an Incubator DAO for ROOK Token Innovation

The Rook DAO recently put forward a proposal to create an Incubator DAO to govern a large asset pool and explore new concepts for the ROOK token. The Incubator DAO would be funded separately and have its own governance structure, allowing it to define its own mission, experiences, products, brand and marketing, and manage liquidity, asset strategy, tokenomics, and governance in ways that align with tokenholder interests. The Incubator DAO will have a large asset pool consisting of USDC and ROOK tokens, and will use the ROOK token for governance only.

The proposal has received a consensus of "no objection" from the Sophons, who are responsible for making recommendations on the proposal. However, the proposal is still subject to analysis and discussion by the Rook team and community. If a significant number of objections occur, the vote will either be marked as ‘Failed’ or enter a reconciliation phase.

To receive funding, the Incubator DAO must inherit the governance of the current DAO as its initial framework. It must elect at least 4 multisig signers and 4 sophons, and a multisig wallet must be created to serve as the treasury for the Incubator DAO. Once these criteria are met, numerous ERC20 tokens will be swapped for USDC, and the USDC output of the swaps, plus 162,780 ROOK, and 10 ETH (for gas) will be transferred to the Incubator DAO multisig.

The proposal aims to empower tokenholders who have new ideas for where to take the ROOK token but are discouraged when these ideas do not align with the specific mission or requirements of the current DAO. The Incubator DAO will allow these tokenholders to explore new concepts for the ROOK token and collectively manage liquidity, asset strategy, tokenomics, and governance in ways that totally align with tokenholder interests.

DAOs are flexible organizations that are uniquely suited to the ever-changing environment of DeFi. While they may not always be the fastest at making decisions, they are adaptive and highly durable. The Rook DAO proposal to create an Incubator DAO is an example of how DAOs can empower tokenholders and foster innovation.

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