In order to incentivize existing GNO holders to immediately become active in the GnosisDAO, the GnosisDAO should merkledrop a 5% bonus to all Gnosis Safe addresses that participate in GIP snapshot voting within the first month after the GnosisDAO launches.
Abstract
The GnosisDAO will use a merkledrop to distribute, pro-rata, 5% of the GNO balance held in Gnosis Safes and used to vote in the GnosisDAO within the first month after the GnosisDAO launches. For example, a safe that holds 100 GNO and casts a vote for this (or any other) GIP proposal, within the time limit, would receive 5 GNO tokens in the merkledrop.
Motivation
The motivation for this proposal is to immediately activate existing and new GNO token holders to become active in GnosisDAO governance decisions. This proposal would also help to further distribute GNO tokens in the community.
More detail will be added to the specification as becomes available.
Rationale
A merkledrop should be used, as opposed to other designs, so as to reduce the upfront gas cost and to require recipients to actively claim their bonus tokens.
Disclaimer
The plans outlined in this proposal are subject to discussion and change. They may also need to be (re)structured to take account of legal, regulatory, or technical developments as well as governance considerations. This document should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in any transactions. You are solely responsible for your own investment decisions and transactions.
I voted against it, as I am concerned that this becomes a taxable event. If there is a solution to introduce an incentive for participating without any tax implications, I would vote for it.
Thatâs a totally fair concern and one reason that the merkledrop is the preferred solution; recipients have to actively claim their tokens, which is presumably the taxable event. If they donât claim, then there is presumably no taxable event. (this is not legal/tax advice)
But people want to have the 5% additional tokens without a taxable event. Just not claiming is not an option.
The point I am trying to make is that in a perfect market, assuming everyone participates in this incentive scheme, the market value per GNO would fall by 5 percent and everyone would have to pay tax on his newly received 5% tokens. Hence, GNO holders wonât profit.
While the people who claim the tokens will have a taxable event, I doubt very much that the price of the token will drop in proportion to bonus. If it were 5% inflation and a perfect market, then Iâd agree with you. But this is a transfer of existing tokens to active token holders.
My understanding is that this event is to motivate GNO holders to actively engage with the GNODAO. @alex Could you elaborate on:
Why do you think the GNO market would fall 5% just because of this early incentive? Based on what calculation or assumption? Also in what time-frame do you expect that to be?
As for paying tax: Arguably even when paying tax, you still get incentivized. This is different for everyone depending on their tax residency/jurisdiction. Also the âclaimâ event makes it perfect in terms of individually deciding/timing when you want to claim the GNO tokens. From my understanding in most jurisdictions, only when âclaimedâ it will be a taxable event.
If we are assuming every GNO holder would participate, then the supply is inflated by 5% percent, but the same value is represented by GNO. Hence, the price will drop by 5%.
I have a counterproposal:
The GNODAO puts x% of the supply into a lock. All the future rewards of these âlocked GNOâ, such as token allocations from future token creation events such as this one are claimable by âactive gnodao membersâ.
I think this is a huge assumption and an outcome that is pretty unlikely, in my opinion.
The DAO is not minting new tokens, so itâs not really inflated.
Although it would be moving tokens into circulation that are currently not, so it may be practically the same thing.
It would be more fair to have this proposal in stage 2 to give everyone - not just Gnosis employees - the chance to move their GNOs to a Gnosis Safe Wallet before the snapshot is going live⌠If you want to incentivise voting & people to move their funds to a Safe, then you shouldnât pick a snapshot date from before anyone knew about this proposal. I would suggest to redo the snapshot vote, otherwise its harming all GNO holders who arenât using a Safe currently.
Happy to be here and first of all I want to say thank you for all Gnosis people for their great work during last years. I cant imagine Gnosis founders feelings during GnosisDAO creation.
From my view GIP-1 is important for future GnosisDAO governance process. 10% quorum it is aprx 140000 GNO. It is huge amount and if we excluding DEX and CEX liqudity, Gnosis team members holdings and big fishes holdings it easy to say - 5% GNO merkledrop for active participants it is step in wider GNO distribution and it is definitely right direction and this will helps in future governance process.
Also I really like Alex counterproposal
It is very interesting independent GIP and worth to researching.
Congrats on the launch of GnosisDAO. This is an exciting next step forward for Gnosis. I support the idea of working towards wider distribution of those who will help govern the system. This proposal in its current state is a great way to kick things off.
I assume the amount of GNO held during the GIP-1 snapshot block will count for calculating the 5%, not the final balance of this address when the drop happens, right?
@auryn_macmillan could you update the proposal here and on snapshot to include information on the safe vote delegation please?
Maybe it could also be phrased more clearly that the GNO balance of block 11,364,500 is the one that matters for the 5% reward distribution.
Hey there! How will the Omen marketsâ liquidity for this GIP-1 be managed? Is it supposed to stay until the end of the resolution period or it will be removed before that?
