The DAO Takeover Playbook: The New DeFi Strategy

Exploring the profitable, yet controversial, strategy of DAO dissolution in the DeFi landscape, and identifying potential DAOs at risk for such events

Some DAOs are worth more dead than alive.

This is the logic behind several DAO “rage quits” when the DAO is shut down and the remaining treasury assets are distributed to the token holders.

That's exactly what the ROOK DAO has done. The ROOK token holders voted to shut down and distribute the Treasury, which was valued at $25 million USD. Following this decision, the token price increased by 5x.

This price surge was largely due to the value of the treasury exceeding the total market cap of the ROOK token.

Keep in mind that not all ROOK token holders will redeem their tokens. This has led to ROOK currently trading at a market cap higher than its treasury. So, speculators are assigning a premium of over 50% to the price of ROOK. You can find more details on this development in my Twitter thread.