Altcoin
Giant Crypto Fund Makes a Critical Offer: Altcoin Made a Leap!
A critical offer came from Thanefield Capital, a cryptocurrency fund with an interest in the GNO token. The giant crypto fund has proposed a buyback program for the native Gnosis DAO token. The proposal 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 should be linked to a growth program. Following this proposal, the price of the altcoin recorded a vertical increase in a sluggish market.
Thanefield Capital’s interesting offer for altcoin project!
The proposal came from Thanefield Capital, a crypto fund with an interest in Gnosis (GNO) token. The proposal calls for the DAO to distribute $30 million from its treasury over a six-month period. Furthermore, the proposal claims that this would realign GNO’s market capitalization to its true book value.
Capital Thanefield stated that the current market capitalization based on the circulating supply of GNO is undervalued. He compared that 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 noted that the circulating supply of Gnosis tokens amounts to 1.53 million GNOs. He also noted that this is worth approximately $424 million. This figure is much lower than data on sites like CoinGecko. However, the fund claimed that the 1 million tokens belong to the Gnosis DAO and therefore counted them outside of the circulating supply.
The co-founder of Gnosis approves the proposal
The proposal has so far received preliminary support from community members. So far, 12 out of 14 voters in the governance forum have supported the proposal. Gnosis Co-founder Martin Köppelmann endorsed the proposal, saying that the token buyback should be tied to a “growth agenda.” In response, Köppelmann said:
I support this proposal if it is linked to a growth program where the GNO from the repurchase it is ultimately used to attract more users.
The proposal envisages a dual strategy
If Thanefield’s proposal is approved, the implementation strategy for the proposed buyback program will consist of two approaches. The first is the TWAP strategy, which involves allocating 15 million dollars for the purchase GNO tokens. This method uses a 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 optional and involves an allocation of 15 million dollars. However, it allows you to optimize purchases based on market conditions. The buyback will be handled by karpatkey, an on-chain asset management project.
The Altcoin price reacted positively to the development
Gnosis DAO oversees the Gnosis Chain, a sidechain that runs parallel to Ethereum, and the CoW Protocol, a decentralized exchange. Safe, the most used multisig provider on Ethereum, also switched from Gnosis to its own DAO. As you followed Cryptokoin.com, the market was quiet today. However, the price of the altcoin saw a rise of up to 20% following the offering. The token’s price jumped from an intraday high of $294 to $320. However, the token then lost share. However, it was still trading at $311 for a daily gain of more than 5% in a sluggish market.
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