Tokens for Gnosis Auction and Cowswap

Tokens for Gnosis Auction and Cowswap

Gnosis has recently launched two successful products with Gnosis Auction and Cowswap. Cowswap generating >$30M in trading volumes in just few day after launch.

The Gnosis Auction also has traction with successful token sales from Boson, YFI and Proof of Humanity. Couldn’t find dashboard though that shows the amount of money flow.

But how is the value of these products captured within the GNO Tokens? Isn’t it the GNO investors that paid for these products and should therefore get rewarded?

Solution:

Many Defi teams are currently launching tokens to control their protocols and to capture value through the fee mechanisms. I don’t see a reason why Gnosis should not do the same for Cowswap and Gnosis Auction. Both seem to have a significant traction and there is plenty of possibility to take a cut from the money that flows through the protocols. So I would imagine a COW (Cowswap) and a BID (Gnosis Auction) tokens to be issued by Gnosis and distributed to past users through retrospective airdrop and used for liquidity mining to incentives in the future. But a big share of tokens could also be issued to the current GNO holders through airdrop for example. This would mean that GNO investors would directly benefit from the success of the products that were financed by them.

I have not put much thought into this but thought I could maybe inspire some discussions around this idea.

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Hey - welcome @freakyfractal and thanks for your post!
It is a long and ongoing discussion whether individual projects started by Gnosis should issue their own token. It certainly is a discussion for Cowswap and GA but the biggest one would likely be the Gnosis Safe.
For the Safe, there is already a somewhat concrete (slightly outdated) proposal: GIP-2: SAFE Token Model

So while the option of introducing tokens for projects is definitely on the table in any case we would make sure that existing GNO holders are properly rewarded. A potential new token should certainly be minted by GnosisDAO and only brought into circulation if it is in the interest of GNO holders.

Alternatively, there are also many potential ways to connect those projects to GNO.
For Cowswap (and the underlying GPv2) there is already this plan: GPv2 Fee Model

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Hey @freakyfractal, welcome onboard

As @mkoeppelmann mentioned, the discussion for product-specific tokens has started a while back and is ongoing.
I think there are good arguments for and against this model, so the discussion should def be interesting and relevant.

From the perspective of Gnosis Auction, a dedicated token could be beneficial in few different ways. For more nuanced governance decisions around the product, as well as helping to bootstrap a community and incentivize usage and of course distribute value back to token holders (and GNO holders).
I’d be really happy to hear and read more argument for and against a Gnosis Auction token.
I encourage you to be more specific and detailed in your thoughts and think it’d be a good idea to start a new dedicated thread for that matter under the #gnosis-auction category :upside_down_face:

Is this discussion somewhere public? I would like learn more about the things that were already discussed on this.

I have read the SAFE proposal and I like it. But with Safe I think a token model is less straightforward than with Gnsis Auction and Cowswap. Still I am wondering what is the status of this proposal? Seems like most people that voted are in favor but no movement recently.

The SAFE token discussion is the one I was referencing.

I think there is a high level discussion that need more community engagement generally whether adding additional tokens to the Gnosis ecosystem is desired.
Gnosis has some history with tokens that didn’t end up getting a lot of traction like OWL and MGN. Those create more confusion and less focus on GNO and its value accrual mechanisms.
This highlights that there’s a ‘cost’ for creating new tokens and it should be considered carefully.
Hearing more opinions about it will def help form a community consensus over time.

And then there’s the specific discussion about potential new product-specific tokens for Gnosis Auction and Gnosis Protocol. Some relevant questions are:

  • How GNO token holders will benefit from Gnosis’ products and what will be the connection of GNO and the new tokens.
  • What is the benefit of the new tokens? Why can’t GNO be used instead?

If you have more specific thoughts here - would love to hear them as well.

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