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Rook DAO proposes dissolution, treasury distribution to token holders

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The Rook DAO community has proposed a dissolution of the DAO, citing network stagnation, poor management, and DAO exclusion.

Rook DAO to dissolve

The ROOK protocol has recently suffered severe criticism, especially from the DAO. On March 22, Wismerhill proposed the network dissolve the DAO and allow token holders to get some tokens from the treasury.

Wismerhill mentioned some issues in the proposal, including differing interests between token holders and the management team. The reports suggest that the current governance mechanism is management team-oriented but excludes actual token holders.

Further, Wismerhill noted that the network’s leadership has failed to grow the protocol. Reports indicate that the network recorded more volume declines instead of enjoying growth.

According to reports, the management’s failure to create and publish a roadmap has also been an issue of contention.

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Owing to the problems cited, Wismerhill wants a dissolution of the DAO, worth about $50 million. This treasury should then be distributed (~$51 per token) to ROOK governance token holders pro-rata.

The token holders should get about 250% return based on the proposed DAO treasury distribution.

Following the submission of this proposal, the anonymous ROOK project CEO, Hazard, disagreed with the idea of a failure to deliver on management’s part. The CEO suggested that their clientele prefers silence about the roadmap and development. 

The proposal also gave a possible implementation of DAO dissolution. The network should create a smart contract allowing ROOK holders to swap tokens for a share of the tokens in the DAO treasury.

If this is passed, the DAO must send the funds to the smart contract.

According to reports, the Rook DAO community resonates with the reasons for a possible dissolution. Despite many agreeing that the network’s state is terrible, most want to understand the legal side first. As such, many users have challenged Wismerhill to do some homework concerning the legality of such a move.

Rook DAO proposes dissolution, treasury distribution to token holders - 1
Rook price action | Source: Coinmarketcap

Following this proposal, the ROOK token has been gaining in the market. It has gained 1% in the past 24 hours and about 50% in the past seven days to trade at $21.20.

Read more: Jim Cramer’s bitcoin prediction flops as coin posts 14% gain

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