kip: 13 title: Empower the multisig to buy back up to $4M of ROOK authors: daddymatty <firstname.lastname@example.org> status: last-call created: 2022-01-22
Empower the multisig to use up to $4,000,000 of DAO Treasury ETH and/or BTC to buy back circulating ROOK and deposit it in the DAO Treasury.
Due to the factors outlined below, it appears as though the price of ROOK is undervalued and should be acquired now to be used strategically for future initiatives:
- The upcoming release and launch of the Coordination Game (“CG”) should be a major catalyst for significant revenue and price growth as well increased awareness for KeeperDAO (“KD”) and ROOK
- The upcoming option to natively stake will increase demand for ROOK
- The reorganization of the DAO will allow us to move more nimbly and be more effective in our decision making/execution
- The value of ROOK is near or below NAV of the treasury
To acquire this amount of ROOK, KD should use a combination of Bitcoin and Ether in our treasury to acquire up to $4,000,000 worth. Utilizing these assets is preferred to leveraging our stablecoins as it reduces the amount of directional asset risk that the DAO assumes.
- Expand, retain, and incentivize contributors that are vital to the future development of new products and infrastructure for KD
- Allow for additional strategic partnerships, M&A activity, or other strategic token swaps
- Allow for future fundraising initiatives
- Expands the balance of ROOK that can be deployed through governance to potential support future growth/retention in contributors and other strategic initiatives
- Signals a level of confidence in the soundness and liquidity of the DAO’s treasury
- Reduces the amount of ROOK circulating in the open market
- Raises awareness of the ROOK token
- Increases the percentage of a native asset which at times is less liquid
- Reduces near-term options to acquire other assets that may better diversify KD’s portfolio or provide a higher rate of return.
Prior to the launch of the CG, a maximum of $4,000,000 of DAO Treasury ETH and/or BTC may be used to acquire ROOK from the open market at the discretion of the treasury multisig signers, with the potential to delegate all or part of the execution to an individual from among the signers. The acquired ROOK will be deposited in the DAO Treasury. Upon completion, an update will be announced on Discord and Twitter with the full transaction details.