How do we fix the GNO distribution problem?

[Anna]

@hollowknight

maybe it is good to vote

I don’t think there’s something specific to vote on yet. One sentiment that was mentioned here that I agree with:

@VirtuousCycle

I think before the distribution problem can be solved, a clearer operating mission needs to be laid out.

Once we know exactly what the purpose of GNO is, then we can solve the distribution problem.

Because the optimal GNO holders (governors) would be quite different depending on what exactly the purpose of GnosisDAO ends up becoming…

However, I do think it would be interesting to continue this discussion and collect different ideas.
Trying to summarize the suggestions that were mentioned here so far:

1. Increase liquidity on AMMs. → already happened, there’s now significant GNO liquidity in AMMs
2. Incentivize usage of Gnosis apps such as Safe or Gnosis Protocol.
3. Sell GNO at a discount to market (auction). → counter argument: if we offer open auctions at discounted prices, we would create arbitrage opportunities to the on-chain GNO AMMs. One way to circumvent this could be to auctioning off locked GNO or conditional GNO.
4. Set aside a “community participation fund” that is proposed every quarter (for reference: 7Slots Casino 🛡️ Gerçek Para Kazanmak İçin Güvenilir Online Casino)
5. Merkle drop to all wallets that have used the Gnosis Products (Gnosis Conditional Token Framework, Gnosis Protocol and Gnosis Safes)
6. Scheduled reward program for contributors to the Gnosis ecosystem. A set percentage given yearly to contributors over x years.
7. Distributing governance tokens (GNO) to people who made correct forecasts about the effect/consequence of proposals
8. Airdrop to Gitcoin donors
9. More of a holistic approach combining some of the previous suggestions: Make a strategic decision to continuously distribute GNO tokens from the reserve to ecosystem participants every 1-2 years with some limitations. For example, distribute up to 10% of liquid tokens every year to ecosystem participants that would include grants, merkledrops for active users, etc.
10. Also have a look at the current proposal to reward liquidity mining on Sushiswap, GIP-4: GIP-7: Should GnosisDAO pay additional GNO rewards for GNO<>ETH LP on Sushiswap?

Raised open questions:

• How to avoid that newly distributed GNO is only going to existing GNO whales (proposal to leverage quadratic mining)
• How to distribute without diluting existing holders
• How do we identify valuable community members
• What percentage of GNO should be distributed to community over what time period