The August 2025 GnosisDAO Report is now available on kpk’s website.
kpk is pleased to present its Community Update for the month of August to the broader Community, to increase awareness and transparency of its activities.
Market Update
The digital asset market closed August on a strong note, with both BTC and ETH reaching new all-time highs (ATHs).
- BTC (-4.5% for the month) reached a new ATH of $124.12k mid-August, before retracing to close the month at $108.41k. ETH (+18.4% for the month) outperformed the broader market, peaking past $4.95k before closing the month at $4.38k.
- Institutional inflows slowed down to $4.37B, driven by growing adoption of ETH-based products ($3.96B), but partially offset by outflow from BTC-products (~$301M).
- Bitcoin dominance declined further (from 61% to 58%), driven by strong ETH outperformance. Some exchange-related tokens also made strong gains (OKB +262%, CRO +113%, MNT +67%, KCS +38%). OKB was up sharply after OKX announced the token supply will be cut in half. CRO was up on news of a new digital asset treasury company that will hold CRO, established in partnership with the Trump family. Other strong performers were LINK +48%, POL +43%, PUMP +36% and ARB +36%.
- The rest of the Top 20 digital assets by market cap showed mixed returns, with most underperforming ETH (XRP -5%, SOL +23%, BNB +13%, HYPE +3%).
- The worst performers for the month were BONK -17%, PENGU -16% and surprisingly SKY -16% as it failed to capitalize on the wider stablecoin narrative in August.
- The total implied network value (market cap) of the digital asset market stood at $3.84tn at the end of August and was largely flat for the month.
- Crypto funding rates fluctuated significantly during August without reaching extreme levels:
- Off-chain Funding Rates: Both BTC and ETH funding rates stayed between 5% to 12% on Binance despite choppy price action. Open interest for Binance BTC and ETH was almost flat (BTC Perps: 130k to 131k (BTC), ETH Perps: 2.56M to 2.64M (ETH))
- On-chain Funding Rates: On Hyperliquid, the rate fluctuations were much more pronounced; ETH funding moved between -6% and 38%, while BTC funding was between 5% and 38%. Interestingly, open interest for ETH and BTC was almost equal at $3.70B towards the end of the month.
Several notable developments in the crypto space during August were:
- Digital asset treasuries continued gaining traction, driving ETH demand.
- Tom Lee’s BitMine Immersion Tech (BMNR), which is targeting to hold 5% of total ETH supply, bought almost 1.30M ETH in August, and finished the month with a total of 1.80M ETH in their treasury.
- Sharplink (SBET) also continued to stack their ETH treasury, growing from 361K to 798K ETH.
- Other companies like The Ether Machine (DYNX) and ETHZilla Corporation (ETHZ) also followed suit. The total ETH held by public companies is now a staggering amount of 3.5M ETH or about 3% of the total token supply.
- In a landmark shift, the Commodities Futures Trading Commission announced that spot crypto asset contracts can now be traded on futures exchanges under its jurisdiction—ushering in enhanced federal-level clarity and collaboration with the SEC under “Project Crypto.”
- BlackRock crossed $100 billion in crypto holdings. As of August 14, BlackRock has accumulated approximately $104.00B in crypto assets, with Bitcoin comprising the lion’s share—underscoring a massive institutional commitment to digital assets.
- Crypto enters U.S. retirement plans as a Trump administration executive order now permits 401(k) and other retirement plans to invest in cryptocurrency investment vehicles, private equity as well as other alternative investments, potentially opening trillions in new capital flows, while raising concerns about risk for ordinary savers.
DAO Financial Update
- July 2025
- August 2025
Asset Allocation
- As part of the ongoing work to reduce and straighten operational security the Gnosis DAO assets are now segregated in 6 different operational SAFEs both on Ethereum mainnet and Gnosis Chain.
- ETH initiatives:
Stakeway - 630 ETH
NODEset - 129 ETH
Chorus ONE - 805 ETH
Serenita - 501 ETH
Kelp - 965 rsETH (Uni V3 LPing)
Fluid - 100 ETH
Ether.fi - 1600 ETH (AAVE + ETH vault)
Morpho - 1000 ETH
Gearbox - 100 ETH
Balancer - 4235 ETH
AAVE Umbrella - 817 ETH - Stable initiatives include Pendle ($5M) and Fluid ($1M)
- Unwinding of the EURA position on Angle.
Gnosis Chain Endeavors
- Rebalanced the operational positions for wstETH/sDAI and wstETH/GNO on Uniswap V3 designed to provide high swap efficiency
- New high throughput pools deployed for EURe/sDAI and BRLA/USDC.e on Uniswap V3
- Unwinding of the HOP DAI bonder and hDAI/DAI LP position in alignment with their sunset of the V1 bridge
- Spearheaded and worked in tandem with AAVE DAO to deploy and seed liquidity for GHO on Balancer and AAVE
- Withdrew from Spark various assets in accordance with market needs
GIP updates
GIP-58, continued the monthly disbursement of 55,555 DAI fulfilling quota 33 and 34
GIP-101, finished the distribution of 10,000 DAI fulfilling quota 2
GIP-117
bCSPX distribution officially fulfilled on July 10th, totalling 3011 GNO. kpk continued the incentive program to maintain liquidity using its mandate as defined by GIP-58.
wbTSLA distribution for July and August was 824 GNO.
GIP-126, started the quarterly disbursements of 187,500 DAI fulfilling quota 1
GIP-128, started the quarterly distribution of 7.5M DAI fulfilling quota 1
Fees
For these two periods, the management fee charged was $333,334 (2/12 of $2 million per annum). The performance fee is 20% of DeFi results from assets on Mainnet, which resulted in 47.84 ETH.
| Management Fee | Performance Fee (ETH) | |
|---|---|---|
| January | $166,667 | 33.72 |
| February | $166,667 | 25.07 |
| March | $166,667 | 36.04 |
| April | $166,667 | 42.20 |
| May | $166,667 | 26.07 |
| June | $166,667 | 33.44 |
| July | $166,667 | 26.51 |
| August | $166,667 | 21.33 |