Gnosis DAO Faces Treasury Redemption Proposal from RFV Raiders with $220M at Stake

The RFV Raiders, a group of activist investors, have set their sights on Gnosis DAO with a bold proposal that could reshape the treasury’s future. Their plan, outlined in GIP-150, calls for a one-time, opt-in pro-rata treasury redemption for GNO tokenholders.

If approved, the proposal would allow eligible GNO holders to redeem their tokens for a share of Gnosis DAO’s over $220 million treasury. The redemption value is calculated at approximately $170 per GNO token, nearly 30% above its current market price of $131.

Proposal Details and Voting Status

The redemption would be based on 1.3 million eligible GNO tokens, excluding those held by Gnosis Ltd, which the proposal argues “already operates with DAO funding.” Voting on GIP-150 is currently underway and will close on May 12.

As of the latest update, 65% of the 330,000 votes cast are against the proposal, despite an early lead for supporters. The proposal’s author, who goes by Wismerhill, argues that GNO trades at a “persistent and widening discount” to the value of the Gnosis DAO treasury. They highlight that even after $22.5 million in recent DAO funding to Gnosis Ltd, the “discount to NAV has widened,” with minimal value accrual to GNO holders.

Community Reactions and Criticisms

The proposal has sparked mixed reactions within the DeFi community:

• Ignas | DeFi, a DeFi commentator and GNO holder, acknowledged that “the RFV logic has a point” but dismissed the move as “pure arbitrage trade, not some moral mission.” He voted against the proposal.
• ivangbi, Ethereum Foundation DeFi coordinator, argued that without clear protections for GNO holders, there is no “moral” right to the treasury. They stated that if GNO isn’t advertised as having its “bottom price line protected by the assets,” holders lack a moral claim.
• Sebastian Bürgel of Gnosis questioned when “the most respected builder in the space” transitioned to operating like a “hedge fund.”
• Nick Almond of Jito dismissed the proposal as a clear “treasury rug,” suggesting it exploits the DAO’s resources.
• Anthony Leutenegger of Aragon, whose DAO was targeted by the RFV Raiders in 2023, offered a more nuanced perspective. He urged for improvements in “programmatic token holder rights” as a tool for incentive alignment.

“Words every OG DAO with a serious treasury should fear atm. Here's how @beefyfinance fought back against RFV.” — jackgale.eth

RFV Raiders’ Track Record

The RFV Raiders, who reject the “raiders” label, gained notoriety in 2023 for targeting multiple DAOs. Their past targets included:

• Rook, where they secured a 5x return for tokenholders.
• FEI/Tribe, which led to the wind-down of the FEI protocol.
• Aragon, which was ultimately forced to repurpose its treasury into a grants program.

More recently, the group has set its sights on Beefy Finance, with some speculating it could be the next target.

Gnosis DAO’s Recent History

This proposal comes less than six months after Gnosis DAO voted to fire its former treasury manager, KPK, with an 88% backing. The move followed a broader trend of DAOs reevaluating treasury management and governance structures in the DeFi space.

Gnosis DAO is known for its contributions to the ecosystem, including projects like Safe, CoW Swap, Gnosis Pay, and Gnosis Chain. These initiatives have positioned Gnosis as a key player in the Ethereum and DeFi landscapes.