Status: proposed

Discussion link: https://gov.cook.finance/t/cook-believer-index-cbi/245

Created: 02/21/2022

Executive Summary

To create Cook Believer Index (CBI) which encumbers 1000 COOK tokens per CBI.

Essentially 1000 COOK Tokens = 1 CBI

Problem Statement

With a utility token like COOK, the current number of zeroes makes it quite cumbersome for holders to carry out basic accounting, community members who hold large quantities of COOK governance tokens at times find the denomination of their holdings too large and therefore inconvenient to manage their inventory.

Proposed Solution

Overview

Propose to create a new index - the COOK Believer Index (CBI) that encumbers COOK on a 1:1000 basis.

i.e. 1000 (CBI) = 1 COOK token.

Concisely put, the CBI is a ​​fully redeemable and fully collateralized basket that contains 1000 units of COOK token. For efficiency, the CBI will be redeemable in real-time for a 1:1000 equivalent of COOK tokens on-demand.

Rationale

The CBI will encourage large holders of COOK) to manage their COOK token inventory better with less complexity.

The eventual participation in holding of CBIs by community members will also allow better identification of repeated and loyal users of Cook Index Products. Feedbacks from repeated users will help better product and governance design for the Cook community.

Specification

• Issuance of 1 Cook Believer Index will encumber 1000 COOK tokens in the originating holders’ wallet.
• Cook Believer Index is to be fully collateralized by only COOK tokens
• Cook Believer Index to be fully redeemable at a 1 CIB to 1000 COOK token ratio at all times.
• CBI is to be redeemable in real-time for a 1:1000 equivalent of COOK tokens on-demand.