That’s 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 don’t claim, then there is presumably no taxable event. (this is not legal/tax advice)
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I guess in a similar way the UNI token was ‘claimable’?
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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 won’t profit.
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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 I’d agree with you. But this is a transfer of existing tokens to active token holders.
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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 ‘claim’ 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 ‘claimed’ it will be a taxable event.
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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 “locked GNO”, such as token allocations from future token creation events such as this one are claimable by “active gnodao members”.
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 it’s 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 shouldn’t 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 aren’t using a Safe currently.
The snapshot block (11,364,500) is next Monday (Nov 30th, 2020). So everyone has time to move tokens and vote.
Originally it was set to earlier, but we realized this was an issue and replaced it with a new vote.
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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.
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Are there any other examples of DAOs airdropping tokens to voters at their inception?
Have there been any prior votes with the GNO token?
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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.
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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?
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The snapshot block (11,364,500) is next Monday (Nov 30th, 2020) and will be used to calculate the 5%.
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I’m trying to vote (and my 2 out of 3-Safe is connected to the Snapshot-page) but I keep error messages before I can even sign the vote. Any idea?
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Yes, Snapshot doesn’t support Smart Contract wallets, hence you have to delegate your vote to an EOA. Here is an easy step-by-step guide how to delegate your vote from a Gnosis Safe [https://drive.google.com/file/d/1Y46iJH211lrp4jgXDyeWsmSk99Gsu8P4/view?usp=sharing…]
let me know if you have any questions 
I will also make a suggestion to update the proposal to include this information.
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@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. 
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Hey there! How will the Omen markets’ 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?
Hadn’t thought about it as an independent GIP. Perhaps you or @alex could start a discussion in Governance for it?
Not that I’m aware of.
Sure! Will update now.
Anyone can provide liquidity to the markets, so it’s up to each liquidity provider to decide if and when to remove their liquidity. The bulk of liquidity will be removed a few days prior to the end of the vote.
I’m actually not sure that we’ve settled on block 11,364,500. That is the snapshot for voting in this proposal, but the wording in the proposal implies that the snapshot for the merkledrop should occur one month after the Gnosis DAO launch.
I’d propose that block 11,516,300, landing on December 23rd, should be the snapshot date for the merkledrop.
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