DeFi protocol ROOK has recently come under fire for its lack of transparency regarding its progress and roadmap, as stated by our sources. During a recent governance call, the CEO, who goes by the name Hazard, revealed that the company is “bound by the will of the order flow providers” and cannot share more information about its plans due to conservative lawyers representing clients. Hazard said that the order flow providers are the company’s customers, and they have the final say in what information is made public.
The lack of transparency has led to dissent among some of ROOK’s token holders, who call for the dissolution of the decentralized autonomous organization (DAO) and the distribution of the company’s treasury, valued at almost $50 million. However, Hazard downplayed the importance of the ROOK token and cautioned speculators not to invest based on the company’s output.
Despite the lack of transparency and internal dissent, ROOK’s token has risen nearly 12% in the past 24 hours and is currently trading at around $15.71. However, some analysts believe that the DAO’s lack of transparency and operational say could be detrimental to the company’s long-term success.
According to Wismerhill, a trading fund that describes itself as pseudonymous and recently proposed the dissolution of ROOK, the absence of transparency implies that a DAO, which depends on public information to function, can no longer govern the company.
This sentiment highlights the importance of transparency in decentralized finance, where trust is a crucial factor in the success of any project.
The recent controversy surrounding ROOK highlights the challenges faced by DeFi protocols as they try to balance the needs of their clients and customers with the demands of their token holders and the wider crypto community.
