Update on GIP-100
After almost 5 months of the approval of GIP 100, we are providing an update on the status of the buybacks performed by karpatkey. The main objectives of the buybacks are to transfer value to long-term GNO holders, establish a valuation floor above book value, and enhance GNO’s investment appeal to support DAO growth and visibility. Currently, total buybacks performed amount to $17M with $13M remaining to reach $30M (see here).
Summary
-
$15m TWAP over 6 months.
- $10M executed with $5M remaining.
- Due to ETH’s volatile nature (and its downward trend since the proposal was passed), combined with some days in which the TWAP did not run, more than 16% remains. These will be compensated after the six months have elapsed by extending the TWAP.
-
$15m Buyback at KPK Discretion
- From these, $7M were executed and there are $8M remaining.
Breakdown by Chain & Asset
- 60% of the buybacks have been performed in Gnosis Chain, while the other 40% in Ethereum.
- 66% of the buybacks were performed utilising ETH (or LSTs), amounting to $11.3M, and the rest, with $SAFE ($5.7M).
Ongoing Efforts and Future Plans
-
At the moment, there are two TWAPs running:
- $5M of the 6 month TWAP, performed utilising wstETH.
- 2.7M $SAFE, sold in chunks every 30 minutes, running until November 20th.
-
5 of the 6 months have transcurred but there’s still more than 16% of the budget left to be utilised. We have identified recurring selling pressure, and decided that it is important to have firepower to perform market buys while we see that it still exists. We are mandated to buy the largest amount of GNO as possible. Using all of the budget now would create a spike in GNO’s price, growing market impact. We believe prolonging the buyback period will allow us to absorb such sell pressure, flattening the volatility of the token.
-
We have also reached an advanced stage in negotiating an OTC agreement to purchase GNO from a party relevant to the market, with the goal of reducing market impact and supporting price stability.