Should Gnosis DAO distribute & sell 150m SAFE to GNO hodlers (including sGNO, LGNO) ?
Let’s do this!
No, let’s do something else.
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GIP: Should GnosisDAO distribute & sell 150m SAFE & vSAFE to GNO hodlers (including sGNO, LGNO) ?
author: @gnosirum
type: Meta
Simple Summary
Should GnosisDAO distribute & sell 150m SAFE & vSAFE to GNO hodlers (including sGNO, LGNO) ?
Motivation
the goal is to decentralize Safe DAO by redistributing governance power (SAFE token) to the Gnosis community (GNO, sGNO, LGNO hodlers)
maintain Gnosis treasury concentrated (=>focused) around ETH and GNO
5% will be allocated to a joint treasury, controlled by the GnosisDAO and SafeDAO in a 2-out-of-2 Multisig. That seems sufficient.
Specification
As part of the SAFE Token distribution, 20% of the total supply will go to the benefit of GNO holders.
15% will be vested to the GnosisDAO Treasury over 4 years. As this is a significant share and to prevent governance centralization of the SafeDAO, we propose that :
a part of the SAFE must be airdropped (to be defined)
a second part vSAFE will have to be sold against ETH or GNO (to be defined)
5% will be allocated to a joint treasury, controlled by the GnosisDAO and SafeDAO in a 2-out-of-2 Multisig. This joint treasury will be used for rewards that are in the mutual interests of the Safe and Gnosis communities. For example, rewarding Gnosis Safe users on Gnosis Chain leading for increased adoption of both.
GnosisDAO Treasury should only keep the 5% in the joint GnosisDAO <> SafeDAO Treasury
Thank you for your initial thoughts on distributing the Safe Token.
I share your argument of having a joint treasury with Gnosis Safe (%-tbd) and pursuing an airdrop to GNO holders (%-tbd).
However, from a treasury perspective, I don’t agree with the argument to sell SAFE Tokens for ETH or GNO. If we decide to allocate x% of the Safe TOKEN to a joint treasury, the goal should be to mutually grow the SAFE ecosystem and eventually participate in that growth instead of further reducing (a) the circulating amount of GNO or (b) buying ETH potentially high prices. I think GnosisDAO’s treasury would miss out on a great investment opportunity.
I’m sorry because my English is bad but I agree with you. I don’t propose to sell SAFE token from the joint treasury (5%). I was talking about I was talking about the other 15%
Thank you for your comment. I especially wanted to initiate a discussion to know the ideas of how GnosisDAO will manage only this 15% for its treasury
My comment was referring to your suggestion to sell vSAFE Token for ETH or GNO. Which I’m not im favor of, due to the reasons described above.
There are two possible views about the 15% imho:
distribute SAFE Tokens to GNO holders (direct yield) [AIRDROP]
use SAFE Token to generate yield at GnosisDAO level (indirect yield) [YIELDFARM]
I suggest to do both as it will benefit existing as well as future GNO holder and provides an opportunity to further strengthen the fundamentals of GNO and hence the ecosystem.
As the 15% will vest over 4 years, it is also possible to set a different allocation for each year. Since existing GNO holders were supporting the SAFE team up to this milestone, I’m personally inclined to distribute a greater share to existing GNO holders in the early rounds.
In summary, I’m proposing the following allocation of the 15%
Year 1: AIRDROP [75%] / YIELDFARM [25%]
Year 2: AIRDROP [55%] / YIELDFARM [45%]
Year 3: AIRDROP [40%] / YIELDFARM [60%]
Year 4: AIRDROP [30%] / YIELDFARM [70%]
This will leave 50% of SAFE Tokens at GnosisDAO for generating long-term benefits for GNO holder while at the same time acknowledging the support of existing GNO holders towards the Safe team by returing a higher ROI.
What about if we pursued a strategy similar to the COW distribution. Rather than sell the SAFE in the open market what about allow GNO holders the opportunity to buy the SAFE from the DAO at a discounted priced. This discounted price could reference something like a prior seed round valuation. In this context I would be in favor of directly distributing 10% of the SAFE tokens via airdrop and then selling the remaining 5% to GNO holders at a discounted price. This would allow the treasury to increase its liquidity while also benefiting GNO holders. Thoughts?
