A critical offer came from Thanefield Capital, a crypto fund with interest in the GNO token. The giant crypto fund has proposed a buyback program for Gnosis DAO’s native token. The offering aims to distribute $30 million for regular buybacks of the token over a six-month period. Gnosis co-founder Martin Köppelmann supported the proposal, with the caveat that the buyback must be linked to a growth program. Following this offer, the altcoin price saw a vertical rise in the stagnant market.
Attractive offer from Thanefield Capital for the altcoin project!
This proposal was made by Thanefield Capital, a crypto fund with an interest in the Gnosis (GNO) token. The proposal involves the DAO distributing $30 million from its treasury over a six-month period. Additionally, the proposal claims that this would realign GNO’s market value with its actual book value.
Thanefield Capital claimed that GNO’s current market capitalization, based on its circulating supply, was undervalued. He compared this to Gnosis DAO’s total assets of $730 million, which includes $630 million in non-GNO liquid assets and $100 million in venture capital investments. In comparison, he stated that the circulating supply of Gnosis tokens is 1.53 million GNO. He also noted that it is worth approximately $424 million. This figure is much lower than data on sites such as CoinGecko. However, the fund claimed that 1 million tokens belonged to the Gnosis DAO, thus counting them outside the circulating supply.
Gnosis co-founder approved the proposal
For now, the proposal has received preliminary support from community members. 12 of 14 voters at the governance forum have supported the proposal so far. Gnosis co-founder Martin Köppelmann approved the proposal, stating that the token buyback should be tied to a “growth program.” In response, Köppelmann said:
I support this proposal if it is tied to a growth program where the GPA from the buyback is ultimately used to attract more users.
The proposal includes a two-pronged strategy
If Thanefield’s bid is approved, the implementation strategy for the proposed buyback program will consist of two approaches. The first is the TWAP strategy, which includes an allocation of $15 million to purchase GNO tokens. This method uses the time-weighted average price technique over a six-month period. According to the proposal, the six-month TWAP will result in an estimated daily buying pressure of $83,333 for the altcoin. The second approach is discretionary and includes an allocation of $15 million. However, it allows optimization of purchases according to market conditions. Karpatkey, an on-chain asset management project, will manage the buyback.
Altcoin price reacted positively to the development
Gnosis DAO oversees the Gnosis Chain, a sidechain running parallel to Ethereum, and the CoW Protocol, a decentralized exchange. Safe, the most widely used multisig provider on Ethereum, has also spun off from Gnosis into its own DAO. cryptokoin.comAs you follow from , there is a stagnant outlook in the market today. In contrast, the altcoin price saw an increase of up to 20% following the offering. The token price jumped from $294 to $320 during the day. However, the token later lost some ground. However, it was still trading at $311 with a daily gain of over 5% in a depressed market.
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