The rapidly evolving universe of decentralized finance (DeFi) has brought a new level of utility and value to the cryptocurrency ecosystem in 2021, but has also provided nefarious players with numerous exploits to divert profits and tokens from unsuspecting investors.
In the last days, KeeperDAO (ROOK), a DeFi protocol that allows participants to speculate, borrow, and lock assets with protection against Mined Extracted Value (MEV) bots that are ahead of transactions, has risen 118%.
TradingView data shows that since trading at a low of $ 124.70 on October 12, the price of ROOK has risen 118% to a daily high of $ 298, since its daily trade volume went from an average of 7 million to 24 million dollars.
Reasons for ROOK’s price increase include the implementation of community governance features, the increase of the total value locked in the protocol, and the possibility of a new token buyback mechanism which could help reduce the circulating supply of ROOK.
New governance features support the current rally
Governance features have been gaining importance in the cryptocurrency ecosystem over time, as community control is considered one of the main features of a truly decentralized network that is not under the control of a small group or group. entity.
As part of its evolution towards a fully operational DeFi protocol, KeeperDAO introduced its new governance voting structure on October 4 with the publication of two KeeperDAO Enhancement Proposals (KIP), who established the simple format for writing KIP and chose the first group of Sophons in the community to help grow the community.
Voting on KIP-0 and KIP-1 is now LIVE and will run for 7 days.
Please vote 'No objection' if you have no objections. This helps us demonstrate a high degree of support for these initial KIPs.
— Rook (@Rook) October 4, 2021
Both proposals were approved without objection on October 11, allowing the KeeperDAO community to start putting its treasury to work to deliver a return for the ecosystem.
ROOK’s treasury and total locked value increase
Another reason for ROOK’s growing momentum is the protocol’s growing treasury, which is now back near its all-time highs set during the market’s bull run in mid-May.
KeeperDAO Treasury. Source: Dune Analytics
According to data from Dune Analytics, the total value of KeeperDAO’s treasury currently stands at USD 122.2 million, while the total value of the assets locked in the protocol amounts to USD 390 million.
Investors bought the fall and the community appeared
Another reason for ROOK’s robustness is the ongoing governance votes, which focus on reducing the circulating supply of the tokens, reducing emissions to stakers and financing development until the end of 2021.
KD Improvement Proposals 2, 3, and 4 are now live for voting 👀https://t.co/zF2Nj8t3T7
— Rook (@Rook) October 16, 2021
The KPI-2 aims to decrease the ROOK issuance rate, which would effectively reduce the number of tokens minted in each cycle. THE KPI-4 is a proposal to use part of the profits from the ‘Ninja’ protocol to buy back ROOK on the open market and burn them.
At the current rate, this would translate into the burning of ROOK tokens worth USD 800,000 per month, which would help reduce the circulating supply and in theory should drive up the price of the remaining tokens.
KPI-3 proposes additional funding for individual contributors who help the development and growth of the project.
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