KIP Draft: Putting Lipstick on a Supermodel

Background

“You can lead a horse to water, but you can’t make him drink”

This idiom is at the center of this proposal, it is no secret that Rook price action has been vexatious these past few months. Now that price is trading below NAV, the token price should be higher on the priority list. As it stands, onboarding new investors is a relatively arduous process due to a lack of liquidity alongside limited CEX listings. This proposal aims to make rook a more attractive and acquirable investment for retail investors. Current market participants show little importance to the fundamental strength of their investments. This claim is supported by current Rook price trading below NAV and the price action of other assets in the space ie. Doge and Shib, trading at a multibillion market cap among other meme coins trading at exorbitant prices.

Proposal

When trying to find ways to make rook a more attractive investment to retail investors you must cater to their tastes. This “road map” is a response to what retail has told us through their investments.

Emissions reduction

As it stands, the on-chain data suggest that TVL on KeeperDAO is dominated by mercenary liquidity that consistently provides overwhelming sell pressure to the market. This section aims at a 50% reduction of rook rewards to the hiding vault as Deetz previously suggested as well as vesting for 6 months 75% of the LP rewards. The basis for this proposal is centered around stemming the bleeding that farmers have brought to the rook market for this past quarter. LP’s who stay beyond these rewards cuts get to enjoys higher APY’s due to slight loss of TVL as well as price appreciation due to reduced sell pressure.

Cex Listings

Cex currently has the lion’s share of traffic for crypto trading. This makes it clear that it should be a priority to list rook where most retail traders are ie. Binance and Coinbase. These Cex listings would allow us to onboard new investors without going having to use costly DEX’s. While the current listing on FTX is notable, most retail investors are located on the two aforementioned platforms. The second leg of this proposal is based on capitalizing on the increased liquidity of the token.

Rebrand/Name change

A mild KeeperDAO rebrand through a name change that coincides with its ticker could be auspicious. Rebrands have historically proven successful at attracting new investors a la Matic (Polygon), ArcherDAO (Eden), and ETH Lend (Aave) to name a few. I would opt for a lighter touch regarding a rebrand since so much time has been spent on the existing aesthetic of the project but something that stands out if the name not coinciding with the ticker.

Marketing

After the rebrand, a marketing initiative should be undertaken to educate the community about the benefits of using KeeperDAO tech over its contemporaries. This marketing campaign could be composed of key sponsorships on educational content channels where investors gather to keep up with the information asymmetry of the space. I suggest seeking sponsorship on the Defiant channel and the Up Only podcast due to a combination of traffic on these channels and their audiences.

Merch/NFTs

In conjunction with these sponsorships, the KeeperDAO merch would be launched with single-sided staking of rook tokens to earn non-transferable merch tokens until the launch of the merch. The reasoning for this is to focus buy pressure on the Rook token for the ability to obtain these merch tokens. These merch tokens could then be redeemed for various pieces of KeeperDAO merch; redemption could be price through a bonding curve with a Dutch auction component to ensure full redemption of the rewards. Once redeemed tokens go through a batch auction to afford A badge NFT as proof of ownership that can be added to users’ profiles as a means of guerilla marketing.

Redenomination

I suggest a “stock split”. In trad-fi, the reasoning behind a stock split is to not price out retail investors from potentially exorbitant prices resulting from bullish price action and appeal to the unit bias of the human brain. All existing investors retain their market share and new investors are also able to buy. This has seen tremendous success in both crypto and traditional market due to the unit bias of the human psyche this success has been seen in the tesla stock split that allowed for its historical bull run to continue despite bullish exhaustion at the point before the stock split. In the same light in the crypto market Safemoon Shiba, doge, Matic, vet, etc. have all reaped the benefits of appealing to retail’s unit biases and I suggest we position ourselves to benefits from it as well. I would opt for having the steps in place for a redenomination but only going through with it when bullish exhaustion is shown on Rook price.

TLDR

As it stands the market has shown that investors show little importance to the fundamental strength of a project. In my opinion, these changes would make KeeperDAO more attractive to investors who would otherwise dismiss the project without sacrificing extensive resources or dev time.

Limitations

Some risks and limitations that could be shown from implementing the full suite of these suggestions could be, wasted resources on things that don’t strengthen KeeperDAO fundamentally. With that said token price and total holders could be part of the efficacy of the coordination game. It is also important to note that while the market has historically been favorable to projects who implement changes like these there is no guarantee that KeeperDAO could benefit from positive price action.

4 Likes

Strongly agree overall on your proposal, I proposed the redenomination already in another kip here: Redenomination of ROOK token , I suggest you take a look and provide your support there.

I still have to think about changing the name though I agree that historically speaking togheter with a good marketing is proved to be extremely effective. I would like to see some suggestions here for a new name hehe. If we find something nice I would def support it.

I saw your proposal and that was what made me add it to this one! In my opinion, it would be best to wait to redenominate until we see bullish exhaustion on price and we redenominate then to not price out investors. Historically that has proven effective in traditional markets, if we redenominate now there is not really a reason to do so since we do not have buyers

I hesitate to “cater to the interests of retail investors”

Also don’t want to spend limited dev resources/team bandwith on “lipstick” implementations such as rebrand, redenom, or merch/NFTs (the other proposals - e.g., emissions reduction/vesting - are worth considering imo).

If KD is creating real value and fulfilling it’s mission, the market/price will catch up eventually. The focus imo should be on delivering value and executing current roadmap.

I think the measures proposed in Kip-5 are a better, more efficient, and more sustainable way to drive attractiveness of the token to investors. At the end of the day, I believe investors care more about liquidity than anything proposed here.

3 Likes

I completely agree that the best way would be to time everything perfectly and together.

2 Likes

Well said my friend, and curse this vexatious price action. My investment in rook token has proven to be nothing more than calamitous, however, I remain hopeful for the future primarily because of posts such as this. I agree with 100% of the material suggestions put forth and applaud the vision and ethos of your thinking. Great wealth and fortune is within our reach, we must merely reach out and grasp it.

1 Like

Cool names could be Utopia, Empire, Cavalry, or Alcazar. All sort of centered around the theme of strength in unity.