Cook — Tokenomics 2.0

An Overview

In any ecosystem a delicate balance is essential for healthy functioning. For the COOK token ecosystem, that means creating new ways to enable COOK tokens to provide additional utility and in turn demand within the overall ecosystem. On the supply side, this means potentially executing new community proposed programs that will take a portion of the fees generated on the platform and set them aside for burning. This will in turn reduce the supply of the COOK tokens over time. As new community DAO proposals that specifically address tokenomics supply and demand are enacted, they will have the ability to foster a growing and healthy ecosystem that will improve the Cook platform.

Areas of Improvement on the Demand Side

Cook Utility — The Cook platform provides a wide array of ways to integrate and make COOK tokens a key part of driving the functionality of the platform. Specifically around participation in the DAO, index exclusivity, buying Cook NFTs and even being used for payments in online platforms such as ecommerce.

Areas of Improvement on the Supply Side

Burning Fees — As the Cook platform scales up, there will be significant growth in fees. While the majority of these fees will be directly funneled back to the community, a portion of the collected fees will be set aside to exchange for burning COOK tokens.

Staking Pools — When the Cook community proposes and votes through new liquidity mining and staking pools, these incentives will serve to drive up the participation level from the community. While it would be great to set extremely high APYs with no lockup periods to attract a large amount of capital, this will have the negative effect of dramatically increasing circulating supply. In this ecosystem though, it’s important to reach a balance between the APYs, reward vesting periods, lockup periods and new pool launch frequency that will create the feedback loops that improve the health of the COOK ecosystem over the long term.

As these areas of improvements on both the demand and supply side are considered by the community, it is the intention that when implemented, the overall ecosystem will improve. In the long term it is in the best interests of all those involved with Cook to see a well balanced and growing ecosystem. With the Cook DAO there will be numerous opportunities for the community to create even better proposals that have the potential to improve Cook tokenomics such as those shared here and to create even more use cases for the COOK token.

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