Status: Proposed

Discussion link: https://gov.cook.finance/t/cook-s-community-incentive-airdrop-program/246

Created: 02/21/2022

Executive Summary

Cook’s Community Incentive & Airdrop program to issue and convert 100,000,000 COOK tokens to 100,000 Cook Believer Index tokens (CBI) as holdings and as future incentives for Cook community’s engagement.

Problem Statement

Community engagement is crucial to the success of any project, very much so, in the very dynamic blockchain space. Particularly for the decentralized nature of the COOK platform, community is essential to provide a crucial feedback loop for the continuous improvement and overall sustainability of the project.

Industry research shows that there are over 10,000 cryptocurrencies projects in the global metaverse, with an average of 200 new projects launched every month. Consequently, there is a stiff competition for every project to attract and sustain the interest of the members of its community. To achieve optimum engagement, there has to be a healthy level of information flow, and an efficient incentive structure built into the fabric of the project. Here are a few reasons why it is necessary to incentivize the Cook Finance Community;

• Building trust and a sense of inclusivity among users.
• Providing an effective channel for communicating information and sharing lucrative opportunities.
• Building a platform to share ideas, and collaborate towards achieving the collective goals of the Cook Finance protocol while maintaining decentralization principles.
• Facilitating communal support and engagement
• Establishing feedback loop to continuously re-evaluate and improve user experience

Proposed Solution

Overview

The golden principle of enhancing community engagement in the blockchain space is to offer utility, timely information and valuable incentives. In terms of incentives. Airdrops and token giveaways are some popular ways the blockchain projects deploy to reward their most active and supportive participants.

In terms of utility, Cook Indexes (ckTokens) have successfully demonstrated their effectiveness as token portfolio management tools. The COOK community engagement can increase exponentially if the utility of Cook Indexes are expanded to include being deployed as tools of treasury management for COOK DAO.

Establishing a Community Incentive & Airdrop program that is incentivized by native CBIs will be a perfect way to achieve and sustain healthy levels of community engagement.

Consequently, this Proposal is moved to have Cook’s Community Incentive & Airdrop program which is structured to convert 100,000,000 COOK tokens to 100,000 Cook Believer Index tokens (CBI) as holdings to be deployed as future incentives for Cook community’s engagement.

In succinct terms:

• The underlying 100,000,000 COOK tokens shall be effectively encumbered and converted into 100,000 CBIs.
• The 100,000,000 COOK tokens allocation will come from existing Cook’s Community Incentive & Airdrop program’s holdings.
• No new COOK tokens will be created from this CBI issuance. Thereby protecting the ecosystem from inflationary pressure.

Rationale

When community members interact with the platform's digital channels to contribute ideas, cast votes or provide feedback, they indirectly create value in different ways that helps the ecosystem grow and develop. Therefore, it is essential to allocate tokens to reward active participants.

Cook Finance’s Indexes, also known as ckTokens, are core to Cook Finance’s DNA and product lineups, so they are the perfect assets to be deployed as rewards. This is because Cook’s Indexes have the following characteristics that set them apart from competitions:

• They are always fully collateralized, 1-to-1
• They are always fully redeemable, and on-demand
• They are non-custodial
• They are non-dilutive
• They behave similarly to a digital warehouse receipt

Therefore, these are some reasons why Cook’s ckTokens are deemed the ideal candidates to be deployed as:

• DAO’s holdings
• Tools for effectively DAO treasury management
• Tools for user engagement incentives.

With the rise of DAO as a governance structure for organizations, Cook Finance should set a precedent for other DAOs around the world to adopt non-dilutive Indexes as treasury holdings and as incentives.

Specification

• Conversion of Cook’s Community Incentive & Airdrop program existing holdings of 100,000,000 Cook Token to 100,000 Cook Believer Index (CBI)
  • Through issuance of 100,000 Cook Believer Index (CBI) by Cook’s Community Incentive & Airdrop program
• Cook’s Community Incentive & Airdrop program to hold above issuance (100,000 CBI) as program holdings for future incentive programs’ use.