Traders who bought the downturn and new governance features support KeeperDAO’s 118% rally

The rapidly evolving universe of decentralized finance (DeFi) brought new levels of utility and value to the cryptocurrency ecosystem in 2021, but also offered nefarious gamblers numerous exploits to divert profits and tokens away from unsuspecting investors.

In the last days, KeeperDAO (ROOK), a DeFi protocol that enables participants to speculate, borrow, and freeze assets with protection from Mined Extracted Value (MEV) bots ahead of transactions is up 118%.

TradingView data shows that ROOK is up 118% from its low of $ 124.70 on October 12, to a daily high of $ 298. as its daily trading volume rose from an average of $ 7 million to $ 24 million.

ROOK / USD 4 hour chart. Source: TradingView
Traders who bought the downturn and new governance features support KeeperDAO’s 118% rally
Traders who bought the downturn and new governance features support KeeperDAO’s 118% rally

Reasons for the price increase of ROOK are among others the implementation of community governance functions, the increase in the total value set in the protocol and the possibility of a new token buyback mechanism which could help reduce ROOK’s circulating supply.

New governance functions support the current rally

Over time, governance functions have grown in importance in the cryptocurrency ecosystem, as community control is seen as one of the main characteristics of a truly decentralized network that is not under the control of any small group or entity.

As part of its evolution into a fully functional DeFi protocol, KeeperDAO unveiled its new governance voting structure on October 4th with the publication of two KeeperDAO Improvement Proposals (KIP). who established the simple format for writing KIP and selected the first group of sophons in the community to grow the community.

Both proposals were approved on October 11th without objection. It enables the KeeperDAO community to use their finances to generate a return on the ecosystem.

ROOK Treasury and total increase in value

Another reason for ROOK’s growing momentum is the protocol’s growing Treasury Department, which is now back near its all-time highs made during the bull run of the market in mid-May.

KeeperDAO Ministry of Finance. Source: Dune Analytics

According to data from Dune Analytics, the total value of KeeperDAO’s treasury is currently $ 122.2 million, while the total value of the assets locked in the log is $ 390 million.

Total value locked in KeeperDAO. Source: Dune Analytics

Investors bought the fall and the community showed up

Another reason for the robustness of ROOK is the ongoing governance votes that focus on reducing the circulating supply of tokens, reducing emissions to the stakeholders and funding development through the end of 2021.

KPI-2 aims to lower 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 and burn ROOK on the open market.

At the current rate, this would result in the burning of ROOK tokens worth $ 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 suggests additional funding for individual contributors to help develop and grow the project.

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