DeFi Protocol Rook’s CEO Saying in Recent Governance Call

Decen­tral­ized Finance (DeFi) pro­to­col, Rook, has col­lect­ed lit­tle atten­tion as its Chief Exec­u­tive Offi­cer (CEO) shared his thoughts. Dur­ing a com­mu­ni­ty gov­er­nance call, the pseu­do­ny­mous CEO of Rook, Haz­ard, said, “the will of the order flow providers binds us.” After this, it looks like Rook is gath­er­ing more atten­tion for its mul­ti­mil­lion-dol­lar cryp­to trea­sury. Thus tak­ing it quite far away from its real busi­ness of build­ing tools for the Ethereum blockchain, Coin­Desk reported.

DeFi pro­to­cols are sim­ply codes, pro­ce­dures, and rules that gen­er­al­ly gov­ern the sys­tems uti­lized in DeFi. Using DeFi pro­to­cols, par­tic­i­pants in the ecosys­tem can take the ben­e­fits to trade, lend, and stake tokens.

The Statement of DeFi Protocol’s CEO

On March 23, Thurs­day, the response from Rook’s CEO sparked dis­sent from some of its token hold­ers. Dur­ing the gov­er­nance call on Rook’s Dis­cord serv­er, its pseu­do­ny­mous CEO Haz­ard drove on per­cep­tions that man­age­ment has failed to ful­fill. While the recent silence on project progress and lack of a roadmap is a func­tion of ROOK’s clien­tele and their “con­ser­v­a­tive” lawyers’ pref­er­ence for stay­ing qui­et, he said.

Haz­ard shared his state­ment for Rook users for cap­tur­ing trans­ac­tion val­ue or Max­i­mal Extractable Val­ue (MEV) on Ethereum. He said “We’re bound by the will of the order flow providers. They’re the cus­tomer, and the cus­tomer is always right.”

The response came as some in the Rook Decen­tral­ized Autonomous Orga­ni­za­tion (DAO) chafe at what they see to be a stag­nat­ing project no longer work­ing in the best inter­est of its com­mu­ni­ty. How­ev­er, a recent pro­pos­al calls for the DAO to dis­solve and split Rook’s trea­sury between hold­ers of the Rook (ROOK) token.

Dur­ing the gov­er­nance call, Haz­ard “down­played the impor­tance of the token and cau­tioned spec­u­la­tors not to think it will per­form based on the out­put of ROOK.” Notably, the ROOK token gave vot­ing pow­er to its hold­ers in deci­sions placed before the DAO.

Haz­ard said on the call, “It’s dif­fi­cult to have pub­lic gov­er­nance with pri­vate infor­ma­tion. Per­haps it’s the case that it has swung too far toward pri­vate infor­ma­tion, and maybe we need to swing back a bit.”

Mean­while, Jason Win­dawi, who host­ed the gov­er­nance call, did not make any imme­di­ate response.

Fur­ther­more, a pseu­do­ny­mous self-described trad­ing fund, Wis­mer­hill, also wrote in a Twit­ter thread on March 22 that states “In a recent pro­pos­al, ROOK’s man­age­ment team recent­ly tried to cut the gov­er­nance token hold­ers from the gov­er­nance process and steal $37M from the $47M DAO treasury.”

Wis­mer­hill also not­ed, “ROOK gov­er­nance con­trols a DAO-owned trea­sury of ~$44M, the project is valu­ing the project below $10M.”

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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