No. GNO/STAKE conversion rate is way too low. Even at 0.10 GNO/STAKE I would still be against this proposal. I believe STAKE remaining a micro/med cap token with our initial rebrand in place has more growth potential than any kind of merger with a much larger organization.
I find this proposal extremely disappointing and one could argue even unethical. After delaying rebranding forever and not keeping any promises, this is what STAKE holders get? The merge would also cause tax issues for many people with the token swap so many would need additional compensation to be a breakeven deal! The worst part about it is the conversion rate. An absolute joke. STAKE holders get nothing in return, only GNOSIS holders will profit from this. Looking at the comments in Stake community telegram and POA Forum, it is obvious that a BIG majority (over 90%) are against this proposal! It would be a big shame if this merge actually happens! xDAI team listen to your community! We are against this! xDAI/STAKE has more potential on its own as the canary layer to Ethereum. Gnosis wants to scoop us up for pennies just as our advancements are coming through and bull market is taking off. Give us 3 months to enjoy some proce discovery and get out of the massively undervalued position we hold in the market then maybe we can talk. 0.0327 GNO/STAKE is an awful deal, no one with any business understanding would ever accept.
xDAI chain has been working diligently on creating the best ETH L2, and STAKE holders and validators have been holding with conviction knowing we will one day have a market cap in the $Billions. This merger takes away any upside potential from STAKE and just throws us onto a token with a much larger market cap even though our chain offers (debatably) much more value to the Ethereum ecosystem. Upon this news of this proposal GNO token increased its mcap $225,000,000 while STAKE gained a measly $46,000,000, that’s the market stating we are ~5x more valuable to Gnosis than Gnosis is to us. Furthermore STAKE has a fully diluted valuation of $170,000,000 while GNO has a fully diluted valuation of $6,000,000,000. Swapping STAKE for GNO destroys any potential for upside price potential and will likely result in less decentralization than keeping things as they were. We have a rebrand, deflationary economics, and marketing coming, in addition to many new projects launching on our chain because of its advantages. Merging with Gnosis won’t add any considerable market advantage, and it isn’t fair trade-off.
I propose at minimum a much more favorable conversion rate to GNO likely around 0.25 GNO per STAKE before this can be fairly considered. Or give us 3-4 months to go ahead with our own rebrand, EIP-1559 implementation, and SBC, let the market properly assess STAKE during the bull run and continue discussions after that.