KIP-4: Use new Ninja revenue to buy back and burn ROOK

---

This is an apparent consensus vote.

• Vote 'No objection' if you agree with the proposal.
• Vote 'Object' if you disagree with the proposal.

Discussion

• Github
• Forum discussion
• Discord

---

Definitions

Buy back refers to the mechanism of using profits to purchase ROOK.

Burn coins means the permanent and intentional elimination of those specific coins from circulation to make them unusable forever.**

Ninja is the internal KeeperDAO Keeper. Address: 0x3D71d79C224998E608d03C5Ec9B405E7a38505F0

Summary

Increasing the value of the ROOK token and keeping the community motivated and united because of this was not a priority until now. Since we do have a lot of funds into the treasury (around $100m) to cover all sort of development and expansion related costs, we could and should use a decent part of the future Ninja profits to buy back ROOK tokens from the open market and burn them.

At current revenue level, this 100% will translate into approximately $800k being used for the buy back every month.

Benefits

1. Create constant buying pressure on ROOK token that would result in an increase of ROOK market price
2. Reduce the total ROOK token supply by burning
3. Create a solid use-case and a reason for people to hold ROOK tokens
4. Keep the community motivated and united by giving back to the token holders some of the profits generated
5. By creating a positive vibe, the community will further drive the adoption of the protocol
6. Legally speaking, the buy back and burn does not affect us long term, proved by many other projects
7. The buy back and burn is super easy to market and drive awareness trough media channels since is a very well received and hyped concept and would be forever one of the main reasons people will like hold the token.
8. The buy back will work together with the limit orders that are discussed here: https://forum.keeperdao.com/t/place-a-limit-buy-order-on-rook-token/87/9 Having the buy back in place will reduce the chances these limit orders fill.

Risk and downsides

1. Will result in slowing down the increase of the treasury since Ninja profits will go there from now on

Background

Please see the original draft here: https://forum.keeperdao.com/t/buy-back-and-burn-initiative/67/21

Proposal

Use 100% of Ninja profits to buy back and burn ROOK, once a week. This lasts until the Coordination Game and new related tokenomics are live. This buy back should be done randomly, regularly, and at least once a week, reducing the risk of it being exploited and increase the efficiency.