GIP: 64
title: Should GnosisDAO distribute SAFE tokens to incentivize decentralizing Gnosis Chain?
author: Stefan George
status: Phase-2
type: Funding
created: 2022-09-13
Simple Summary
As decided in GIP-29, GnosisDAO is receiving 15% of the total SAFE token supply over a period of 4 years. We suggest using the SAFE tokens to support the main objective of GnosisDAO: Making the Gnosis Chain successful. We want to position Gnosis Chain as the most decentralized network available. To support this objective, we suggest distributing the SAFE tokens as additional yield to those participating in staking on the Gnosis Beacon Chain.
We suggest the following distribution:
Equal distribution of vested SAFE tokens to GNO holders on a monthly basis until the end of the locking period (February 15, 2023, about 0.9% of all SAFE tokens).
Eligible GNO:
GNO in locking contracts on Ethereum and Gnosis Chain.
After the end of the locking period:
Use up to 9.1% of the remaining SAFE tokens as additional yield for stakers on the Gnosis Beacon Chain over the remaining vesting period. The distribution should be based on the importance of the different staking categories:
individual stakers (e.g. dappnode users)
distributed liquid staking (e.g. rocket pool users)
professional staking services (e.g. chorus.one)
liquid staking (e.g. stakewise, lido))
The concrete distribution should be decided based on the staking options available at the end of the locking period and will be subject to continuous adoption to reach the goal of decentralizing the network.
Seems a good idea to give additional incentives to validators. And also giving some rewards to ppl who locked gno seems necessary as it was suggested beforehand that this might happen.
Regarding the goal to become most decentralized it might be worthwhile to think about higher incentives for first time stakers, especially new validator nodes run from home.
I agree with you! For the first few months, the distribution should be equal as we didnāt communicate anything else. But as soon as the locking period is over, we should distribute the additional incentives to reach a very well distributed validator set.
Thank you for this thoughtful proposal. I believe GnosisDAO voters should be considered in their own right as I believe governance voters are some of the most aligned with the present and future of GnosisDAO.
It is an interesting proposal in which great importance is given to those who invested their tokens and put them in pools or staked them, in order to strengthen liquidity and in turn help the protocol and blockchain to grow and develop better, bringing benefits. to the community, the developers and the project itself
This is great, the proposal nicely aligns incentives between SAFE and Gnosis Chain.
A few points to clarify:
0.9% of the SAFE supply will be distributed until Feb 15 and 10% reserved for future incentives for stakers. Does that mean that 4.1% of the SAFE will remain in the Gnosis DAO treasury?
Will only sGNO/GNO LPs be rewarded or also sGNO holders?
1Ā° - Is it correct that currently the only option available for staking is to be an individual staker (eg dappnode users)? If not, which of the three other categories is live today?
2Ā° - Please clarity ā10% of the remaining SAFE tokensā. Is it 10% of 14.1% (15%-0.9%) of all Safe token supply? in such case Gnosis DAO would retain 12.69% of all Safe tokenā¦Or is it 10% of 15% of all Safe token supply? in such case Gnosis DAO would retain 4.10% of all Safe tokenā¦
0.9% of the SAFE supply will be distributed until Feb 15 and 10% reserved for future incentives for stakers. Does that mean that 4.1% of the SAFE will remain in the Gnosis DAO treasury?
To be precise: All SAFE tokens, which are vested to GnosisDAO should be distributed as described until we distributed 10% of the total SAFE token supply. This does not necessarily imply that GnosisDAO should not distribute the remaining tokens as well, but this decision will only be relevant in a few years.
Will only sGNO/GNO LPs be rewarded or also sGNO holders?
The proposal suggest to only reward LPs.
How long will the SAFE tokens be vested?
The tokens allocated to GnosisDAO are vesting over 4 years. So in case, GnosisDAO would distribute all SAFE tokens to GNO holders the additional yields would last for 4 years.
1Ā° - Is it correct that currently the only option available for staking is to be an individual staker (eg dappnode users)? If not, which of the three other categories is live today?
You can also use Stakewise to participate in liquid staking. If you provide liquidity between sGNO and GNO on curve you will receive SAFE tokens.
2Ā° - Please clarity ā10% of the remaining SAFE tokensā. Is it 10% of 14.1% (15%-0.9%) of all Safe token supply? in such case Gnosis DAO would retain 12.69% of all Safe tokenā¦Or is it 10% of 15% of all Safe token supply? in such case Gnosis DAO would retain 4.10% of all Safe tokenā¦
GnosisDAO would retain only 5% of all Safe tokens.
Still I didnāt get you clear, 0.9% 9 million of vested safe will be distributed every month till 15 February 2023 or you mean total amount to be distributed is 0.9%?
Also you mean sGno holders will not receive safe ?
Is snapshot taken?
To 0x9a547bfab75183e498
If I may, I would recommend you to read the first line of the proposal and click on the link to GIP 29, then youāll be able to get all information on how various categories of Safe stakeholders have been considered.
As one of the stakeholder, Gnosis DAO is entitled to 15% of all safe tokens. The current discussion is related to the best way it should be used in the interest of Gnosis DAO. So it means your question is probably out of context because the point you are making was already considered in the previous discussions of GIP 29 (which is closed now). Hope it may help.
Safe users on Gnosis Chain are not rewarded with this proposal. GnosisDAO and Safe DAO have a shared pool of 5% of the total Safe token supply, which should be used to incentivize and foster Safe adoption on the Gnosis Chain. Any initiative related to Safes on Gnosis Chain should come out of this budget and would require a separate proposal.
Until the end of the locking period, about 0.9% of the total supply of SAFE tokens (9M) will be distributed. sGNO holders only participate if they provide liquidity for GNO:sGNO on curve.
Thatās a great and fair distribution. I read on safe distribution (the 15% allocated to safe with is 150m safe) 10m will be available right away while the remaining will be vested for the period of 4years, so now I have one suggestion or advice;
In the distribution of 0.9% to GNO lockers why not in first month to distribute non vested safe while the remaining coming months to distribute vested safe. at least when safe trading open GNO lockers will have some little things in there hand before 1st may, 2023 thanks
Where would AllNode stakers fall under the intial 0.9% distribution? It seems as they would fall under the āprofessional staking servicesā group, though I donāt get the rationale for excluding them from the first group as they also have mGNO locked and are also paying out of pocket to help secure the chain. Idk to me their contribution seems on par with the rest of the first group.