This is an apparent consensus vote, open to ROOK and xROOK token holders.

• Vote 'No objection' if you agree with the proposal.
• Vote 'Object' if you disagree with the proposal. If voting ‘Object’ to the proposal, you are encouraged to voice your reasoning on the Rook Forum. Objections that are backed by a strong argument may potentially hold more weight than a simple objection vote.

Sophon Recommendation

The Sophons reached a consensus of "no objection", with all four recommending in favor of this proposal.

Results

KIPs that receive > 50% ‘No Objection’ votes do not automatically pass. On completion of the vote, ‘Object’ votes will be analyzed and discussed by the Incubator DAO team and community. If a significant number of objections occur, the vote will either be marked as ‘Failed’ or enter a reconciliation phase. For more information, see the Rook Governance Beigepaper.

Proposal Full Text Links

Forum Proposal

Proposal Text

Proposal

Implement the rage quit process at Incubator DAO, consisting of a two-step process:

1. ROOK holders can exchange their ROOK for pROOK and a pro-rata share of the Incubator DAO treasury
2. Three (3) months after the start of the exchange, users can exchange their pROOK for a pro-rata share of the unclaimed Incubator DAO treasury

Upon ratification of this proposal, Incubator DAO will use the pROOK token for governance.

Background

Summary

This proposal details the implementation of a rage quit process to allow ROOK token holders to exchange their ROOK tokens for a pro-rata share of the Incubator DAO treasury.

This process consists of two steps:

• Phase 1: ROOK holders can exchange their ROOK for pROOK at a 1:1 exchange rate and a pro-rata share of the Incubator DAO treasury (exchange rate defined by Incubator DAO total treasury ÷ (ROOK total supply [1,268,253.79] - DAO owned ROOK [162,809.03] - Strategic Reserve owned ROOK [452,137.53] - DAO contributors owned ROOK [35,175.14])
• Phase 2: Three (3) months after the opening of the exchange, the exchange window is closed and ROOK holders can’t exchange their ROOK anymore. pROOK holders can now exchange their pROOK for a pro-rata share of the unclaimed Incubator DAO treasury (exchange rate defined by remaining Incubator DAO total treasury ÷ pROOK total supply)

Analysis and Rationale

This proposal intends to clarify the mission of Incubator DAO and provide a clear and actionable process to allow ROOK token holders to access the value collectively owned by the DAO.

Rage Quit Only

Between the reception of ROOK DAO treasury assets and the opening of the exchange window, there will be no expenditure or use of the treasury by Incubator DAO (except audit costs for security reasons).

In summary, the Incubator DAO treasury’s unique use will be to fund the smart contracts that allows ROOK holders to exchange their ROOK for a pro-rata share of the treasury, and pROOK holders to exchange pROOK for a pro-rata share of the treasury.

Double DAO Exclusion Rule

The following ROOK tokens are not eligible to participate in the rage quit process (migration and exchange):

• ROOK tokens owned by the Incubator DAO treasury (directly or indirectly)
• ROOK tokens owned by the ROOK Deployer (directly or indirectly)
• ROOK tokens owned by the ROOK Strategic Reserve (directly or indirectly)
• ROOK tokens owned by the ROOK DAO (directly or indirectly)
• ROOK tokens received by ROOK DAO contributors & members from the ROOK DAO treasury

Implementation

There will be 3 smart contracts deployed to be used in the rage quit process:

• A new ERC20 token, pROOK
• A smart contract to allow ROOK holders to exchange their ROOK for pROOK at a 1:1 exchange rate and a pro-rata share of the Incubator DAO treasury, at an exchange rate defined by Incubator DAO total treasury ÷ (ROOK total supply [1,268,253.79] - DAO owned ROOK 162,809.03] - Strategic Reserve owned ROOK [452,137.53] - DAO contributors owned ROOK [35,175.14])
• A smart contract to allow pROOK holders to exchange their pROOK for a pro-rata share of the unclaimed treasury, at an exchange rate defined by remaining Incubator DAO total treasury ÷ pROOK total supply

Smart Contracts Github

Audit Cost Reimbursement

Wismerhill (0xb85c8c3fb16fc1938ea8c668fb92f3ffe7116622) will receive 6,000 USDC for the reimbursement of the audit costs paid to yAudit here: https://etherscan.io/tx/0xc1a0f2decffd182502c63198794b7aad625aee07cc7eef8fbe830ac5bd2db099.

Execution

The following steps will be executed:

1. The pROOK token smart contract will be deployed 1.1. Ownership transfer of the smart contract to the Incubator DAO multisig 1.2. Minting of 618,132.09 pROOK (ROOK max supply - Incubator DAO owned ROOK - Rook Labs Strategic Reserve owned ROOK - DAO contributors owned ROOK)
2. The ROOK Exchange smart contract will be deployed 2.1. Ownership transfer of the smart contract to the Incubator DAO multisig 2.2. Transfer of 618,132.09 pROOK and Incubator DAO treasury USDC to the ROOK Exchange smart contract 2.3. Calculation of the exchange rate: (total treasury USDC ÷ (ROOK total supply - DAO owned ROOK - Strategic Reserve owned ROOK - DAO contributors owned ROOK)), and set exchange rate 2.4. Unpause the possibility to exchange ROOK for pROOK and USDC based on the exchange rate 2.5. After 3 months (90 days): Pause the possibility to exchange ROOK for pROOK and USDC based on the exchange rate
3. The pROOK Exchange smart contract will be deployed 3.1. Ownership transfer of the smart contract to the Incubator DAO multisig 3.2. Withdraw of remaining pROOK and USDC on the ROOK Exchange smart contract 3.3. Burn of the remaining (unexchanged) pROOK received from the ROOK Exchange smart contract 3.4. Transfer of the remaining (unexchanged) USDC received from the ROOK Exchange smart contract to the pROOK Exchange smart contract 3.5. Calculation of the exchange rate: (total treasury USDC ÷ by number of pROOK total supply), and set exchange rate