Should Gnosis DAO Allocate ETH for a full Audit of Gnosis Wallets and Treasury and Reallocate Additional Assets to Gnosis DAO

Summary

For background information regarding the genesis of this proposal, please read: Blog Post

With the release of GnosisDAO, Gnosis management held back an estimated $17.8 million of assets for Gnosis Ltd., not including additional ETH held as working capital, that should have been allocated to GnosisDAO. These assets were generated through non-transparent venture bets, ICO investments, trading, and yield farming using investor capital raised through their 2017 ICO. We believe this highlights Gnosis’s lack of transparency and propose that GnosisDAO immediately allocate the necessary funds for a full, third party audit of Gnosis’s wallets, transactions, and balance sheet. Once this audit is publicly available, all assets that were purchased, farmed, or developed using investor capital should be reallocated from Gnosis Ltd. to the GnosisDAO.

Proposal

  • Allocate 30 ETH to Nansen to conduct a full independent and transparent audit on Gnosis’s wallets and provide an accurate description of assets in its treasury (Arca estimates this to be $17.8 million).
  • Reallocate all assets that were purchased, farmed, or developed using investor capital from Gnosis Ltd. to the GnosisDAO.

Motivation

The motivation of this proposal is to increase Gnosis’s transparency in line with industry best practices. In addition, this proposal will return control of capital to the Gnosis community, which should have been allocated to GNO token holders. We believe this will correct the power dynamics between Gnosis management and GNO token holders. Returning these assets will lead to an additional $12.03 in book value per GNO token in circulation.

Specification

The audit should include the following items:

  1. Accurate circulating supply metrics including details of employee, management and Consensys vesting schedules.
  2. An accurate list of all Gnosis treasury wallets.
  3. An accurate account for all assets in Gnosis Ltd.’s treasury.
  4. An accurate list of all treasury wallet flows including yield farming, trading, investing, and selling of assets.
  5. An accurate list of Gnosis treasury wallets’ interactions with other Defi products.

Rationale

Accurate answers to these items will help members of GnosisDAO better understand GNO token economics and will inform what assets should be included on GnosisDAO’s balance sheet.

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.

1 Like

Hi Alex,

thank you for making your first proposal to GnosisDAO!

We at Gnosis Ltd are all for transparency and are open to sharing publicly what Gnosis Ltd owns. As you know, we shared our books already multiple times publicly in the past during the Messari Mainnet conferences.

Our last official summary statement on what Gnosis Ltd owns was the Blogpost announcing GnosisDAO: https://blog.gnosis.pm/announcing-gnosisdao-a7102fcf9224

After initialization, GnosisDAO is to have effective control over on-chain assets, including 150k ETH** (~83% of the current ETH treasury)

We are currently working very hard to make the GnosisDAO transaction possible – which involves some heavy lifting in terms of legal and tax structuring.

In total Gnosis Ltd owns approximately 180k ETH. There are a few other assets including a TheGraph and other investments (bound to Gnosis Ltd by contract with varying off-chain conditions) but nothing remotely as substantial as the Ether amount. We don’t think the 30 ETH into an audit is a valuable investment – we have been clear on the 150,000 ETH transfer - but in case the GNO community would like to conduct this audit, this is OK with us. Perhaps keep in mind that there is a risk that you likely mistake wallets owned by independent companies servicing Gnosis Ltd, past and present staff, contributors and advisors as assets “belonging” to Gnosis Ltd. In any case, directors of Gnosis Ltd. will refrain from voting on this proposal.

2 Likes

I’d like to advocate for this proposal to be split into two distinct proposals.

  1. Full audit of Gnosis wallets and treasury
  2. Additional allocation
5 Likes