- A buyback scheme for the native token of Gnosis DAO was suggested by Thanefield Capital, a cryptocurrency fund holding stakes in the GNO token.
- Over the course of six months, the plan would use $30 million to fund token buybacks on a regular basis.
- Martin Köppelmann, co-founder of Gnosis, endorsed the plan, although he added a stipulation that the buyback must be connected to a growth initiative.
Gnosis GNO (+18.18%) A plan for a sizable buyback of DAO’s native token is being discussed.
Thanefield Capital, a cryptocurrency fund having a stake in the Gnosis (GNO) token, made this proposition. It is asking the DAO to release $30 million over the course of six months from its treasury, stating that this will bring GNO’s market value back in line with its intrinsic book value.
Based on its circulating supply, Thanefield Capital claimed that GNO’s present market capitalization is undervalued. It was compared to the $730 million worth of assets held by Gnosis DAO, which consists of $100 million in venture capital investments and $630 million in non-GNO liquid assets.
It said that in contrast, there are 1.53 million Gnosis tokens in circulation, which are worth roughly $424 million. Even if this is far less than what is shown on websites like CoinGecko, the fund claimed that 1 million tokens were counted outside of the circulating supply since they are controlled by Gnosis DAO.
It looks that community members are beginning to endorse the plan; thus far, 12 out of 14 participants on the governance forum have voted in favor of it. Martin Köppelmann, a co-founder of Gnosis, approved the plan but insisted that the token repurchase be connected to a “growth program.”
Köppelmann responded, “I support this proposal if it is linked to a growth program where the GNO obtained in the buy back are subsequently used to attract more user.”
The suggested buybacks use a two-pronged approach
There will be two methods used to carry out the suggested repurchase program if Thanefield’s proposal is accepted. The first is the TWAP approach, which entails setting aside $15 million to buy GNO tokens.
This approach makes use of a six-month time-weighted average price strategy. The proposal states that the six-month TWAP will put an estimated $83,333 in buy pressure on GNO per day. The second strategy is optional, costs $15 million, and enables purchases to be optimized in response to market conditions. Karpatkey, an on-chain asset management project, will oversee the buyback.
The CoW Protocol, a decentralized exchange, and the Gnosis Chain, a sidechain that runs concurrently with Ethereum, are managed by the Gnosis DAO. Safe, the most popular multisig provider on Ethereum, split out from Gnosis to become a separate DAO.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
