Forum

xDai / Gnosis Merger

:ballot_box: Update: Voting is live on snapshot

Voting will close on 5:00 UTC on Tuesday 7 Dec, 2021.

More on the snapshot voting process is available here.

Original Post

A merger has been proposed for xDai & Gnosis whereby the xDai chain will be rebranded to “Gnosis Chain” and STAKE will be swapped for GNO.

The details of the proposal are linked below, we encourage community comments on the Gnosis forum to keep feedback consolidated in one place. You can also provide items for discussion amongst the xDai community here.

We will be collecting community input over the coming days as you weigh in on this important proposal.

Please submit your opinion (this is not an official vote, just to collect sentiment):

  • Yes, I support this merge proposal
  • No, I do not support a merge
  • Maybe - I might support a merge with some changes to the proposal (if you select, please mention ideas in comments)

0 voters

5 Likes

it is a big nono for me, xdai is being bought up for few pennies while its a damn gem. Long term holders are getting robbed

16 Likes

Voted no. I want Xdai to be the canary chain for Eth the same way Kusama is to Dot.

Gno merger is a hostile takeover and the faithful hodlers of Stake is being slapped in the face.

18 Likes

if i wanted to invest in Gnosis i would i didn’t invest in xdai chain and stake to receive Gnosis, xdai chain ia doing fine many projects are launching and you can see the effect on price so i totally disagree with this proposal

14 Likes

This is no for me. And it also important to keep note that Gnosis got 250k STAKE voting power from ecosystem fund Gnosis and xDai Partnership. To ensure high demand doesn’t mean low… | by Gnosis | Gnosis

Here the address that holding 250k

8 Likes

yes i agree with what you are saying! Also if you take a look into xDAI telegram chat NOBODY wants this merger! It would be super unfair to loyal $STAKE holders that this conversion happens! I didn’t see any STAKE holder saying that this proposal is a good idea!

9 Likes

For more info here is the Gnosis Slidedeck which goes into additional details relevant to the proposal, benefits related to resource consolidation in the competitive landscape.

1 Like

The snapshot vote is not live yet.

2 Likes

lol no, this acquisition doesn’t make any sense to stake holders

11 Likes

Just No. GNO/STAKE conversion rate is way too low. Even at 0.075 GNO/STAKE I would still be against this proposal. I believe STAKE remaining a micro/med cap token with our initial rebrand place in place has more growth potential than any kind of merger with a much larger organization.

xDAI chain has been working diligently on creating the best ETH L2, and STAKE holders and validators have been holding with conviction knowing we will one day have a market cap in the $Billions. This merger takes away any upside potential from STAKE and just glombs us onto a token with a much larger market cap even though our chain offers (debatably) much more value to the Ethereum ecosystem. Gnosis is railroading us by only providing the proposal on their DAO forum (site is so busy can’t even sign up and make comments on there). Upon this news of this proposal GNO token increased its mcap $225,000,000 while STAKE gained a measly $46,000,000, that’s the market stating we are ~5x more valueable to Gnosis than Gnosis is to us. Furthermore STAKE has a fully diluted valuation of $170,000,000 while GNO has a fully diluted valuation of $6,000,000,000. Swapping STAKE for GNO destroys any potential for upside price potential and will likely result in less decentralization than keeping things as they were. We have a rebrand, deflationary economics, and marketing coming, in addition to many new projects launching on our chain because of its advantages. Merging with Gnosis won’t add any considerable market advantage, and it’s a fair trade-off.

I propose at minimum a much more favorable conversion rate to GNO likely around 0.1 GNO per STAKE before this can be fairly considered.

13 Likes

This is nothing short of a hostile takeover by Gnosis.

13 Likes

I believe the xDai network’s speculative value is much higher than what the gnosis proposal offers.

In my eyes, this is not a merger, but rather an acquisition.
I believe our autonomy is essential to keeping xDai’s unique identity and community alive.

10 Likes

I am not entirely against a merger, but the way it is proposed and the timing don’t make me feel comfortable with it, also many questions remain and I am not able to sign up to the Gnosis Forum to address these questions, maybe just because the site is too crowded, but we will see. So I post some questions here in hope to get some answers.

1.) Is this supported by the xDAI Devs? A Statement with the pros and cons from their side seems necessary to me.

2.) As I understand first step will be renaming of xDAI Chain to Gnosis Chain and POSDAO Staking on xDai will be deprecated. Will this happen simultaneously or will the depreciation of POSDAO Staking continue till Gnosis Beacon Chain goes life. If the first is true: how will validation be done till Gnosis Beacon Chain goes life?

3.) How the validator requirements are planned for Gnosis Beacon Chain? If it will require staking 32 GNO this will make it much more expensive to participate as the planed $32 Stake.

And all like to participate in a snapshot vote on this: pls be aware that $Stake in protocols like Agave and Sushi will not be counted, so make sure to withdraw in time.

3 Likes

I’m totally against it. They are heavily undervaluing xDai Network. That proposal they made basically sells our future with all the upcoming changes/events that would make pump us easily above 1B marketcap.
They want us to sell EIP1559 & SBC& zkPrivacy for a rebrand name ‘Gnosis’, and for a Binance listing… Which is clearly not worthy!
No one with a proper mind would agree with this madness of merging to Gnosis at these rates, selling the potential of growing 10-30x just for a name & a binance listing is crazy.
I think we all know xDai Fair valuation should be at least $1 billion, is we compare ourselves with Polygon, Fantom, BSC…

I would vote yes if they offer something similar to $1 GNO per 1 $STAKE, but at those rates it is a nonsense.
One fellow $stake holder did the calculations for 30,60,90,120,180,270,365 days twap, 14 day twap was the worst possible deal for xdai

And of course, I think they should not be able to vote with those 250k $STAKE they got, that would be unfair.

14 Likes

I just spent the last few hrs off and on going through the details. Initial thoughts we could keep the 10% up charge and just adjust the twap to be around 60 days.

Upon further analysis I found out that GNO has even less upside than I first thought. Their total diluted mcap is $6B whereas STAKE is $160M.

Short term we don’t know what xdai will see without merger. Long term we could see 10-50x, it’s hard to say. There is risk but that’s why we’ve been holding for so long, for the risk reward.

With the merger short term we could see 10x but that could dwindle to 2x because of GNO token emissions.

If I assume stakes 15x potential - GNO 8x potential I would need a 7x buy out to say yes to this.

I really like the idea, I wanted this to work but after crunching the numbers. Sadly I dont see GNO approving this counter: proposed merger would need to be about 0.20 to 0.264 GNO / STAKE

14 Likes

Yeah, I think that rate would be fair. At those rates I would start thinking about it

2 Likes

This just seems to screw STAKE holders. Right when we are getting on a good road with EIP, SBC and rebranding this happens. We don’t need this merger/acquisition. Stake is about to take off. And right when we are primed for lift off this is what gets brought up.

12 Likes

Many of us STAKE holders are very disappointed that we even have to talk about this.
If that vote would ever happen about the merge to Gnosis, the first thing comes in my mind, that it is not worth for STAKE holders, nor for xDai Chain (Pretty easy to understand why). Let’s not forget: They have 250K STAKE voting power from ecosystem fund which they can use easily as a pressure towards their goal with simply using it to vote! LOL -Did we give that 250k to build/grow the ecosystem or to takeover our xDai chain with a very-very unfair merge offer?
Obviously, Gnosis would use it (zero trust, transparency is key) to vote which they got from the ecosystem fund to make this ‘merge’ happen, where basicly they buy our chain & upcoming tech updates with the intention to grow their chain further which is 6,3B fully diluted valuation marketcap right now! Feels overbought, right? Let’s check it by ourselves. It is on the highest ever been, living it’s highest times. Right now is at 1B market cap, with an 6,3B full market cap.
They offer STAKE holders a rate of: ‘‘The exchange rate is 0.0326292707 GNO/STAKE’’
Which would be: 20.34$/STAKE (at 623$ Gnosis price, at it’s highest peak ever), with a 6.3B of fully dilluted marketcap, to make the Gnosis chain grow with xDai chain’s tech further! HAHA!
We would be holding Gnosis, 1B marketcap, and 6,3B fully diluted marketcap, & we will have 20.3$ /STAKE if the already overbought Gnosis price doesn’t dip with the option that we will have an almost impossible time to grow our Gnosis holdings further!
Every STAKE holder must ask: Did we get insane to even vote about this? Obviously it would not worth it, we can easily end up with 10$/STAKE prices if this merge happens. It is a lot more likely to Gnosis to dump down to just 500M marketcap and a full marketcap of 3B, than us to dump down to 10$.
We didn’t have our time to shine, and basicly this exchange rate is a terrible option for every STAKE investor.
Use our common senses & ask ourselves, if a project with 6B fully diluted market cap wants to buy our xDai chain because of the strong fundamentals, strong tech updates, while our chain is at 150M market cap, 180M fully diluted market cap, to grow further their 6B fully diluted mcap chain… WHAT ON EARTH WOULD MAKE US ACCEPT THAT DEAL?

What Gnosis offer for STAKE holders are the ‘Gnosis’ name & the fact that they are already listed on Binance plus a huge future opportunity loss for STAKE holders.
All of this for our eip1559, our SBC, our zkPrivacy updates, our dual token structure which is UNIQUE in the whole space!
What are we hoping for when we merge to Gnosis? That it can grow from a 6.3B fully diluted marketcap to an 60B fully diluted marketcap project with our xDai chain’s tech updates?
Don’t tell me if a 6.3B mcap project wants our 180M mcap project to grow their 6,3B to 10B… and we would not be able to grow to atleast 1B which would be around 100$.
With a STAKE investor standpoint it is truly a no brainer that it’s even a discussion.
Are the STAKE investors enoying buying HIGH sell LOW? I am pretty sure not.
I am not interested in hope that oh Gnosis may could grow a lot higher to hit 10B FDMcap with xDai’s tech. Like what the hell?
It’s only Gnosis holders’ interest to offer such a terrible deal to STAKE holders. Nice timing with the offer, looks like someone wants to use that price peak new ATH to keep Gnosis on that level with the merge of xDai chain.
We should ask instead: If xDai chain has a FDMcap of 180M, and Gnosis with 6,3B FDMcap wants to buy it (with basicly offering terrible opportunities) but wants to grow itself further with our techs to 10B+, why don’t… 1,We finish the Rebranding 2, Go live with the updates (Nov 11 eip1559) 3, Marketing our xDai chain (or rebranded name most likely) instead of getting scammed by this offer which If I am very positive & naive about the offer, I would say maybe Gnosis offered it’s futuristic dream price range offer with all the good intentions of theirs, the vision of Gnosis worth a 30Billion with OUR TECH. Even than… Why would anyone think if they can grow their chain’s value with it our xDai chain would be valued less and less. Haha!
OriginTrail, chose xDai chain, it is a 800m+ project already & growing. Goes for Polkadot parachain slot. Brings value to xDai chain!!
Aave just chose xDai chain to build on with a partnership of RealIT!!!
LUKSO is there too & plans with our xDai chain!!!

This isn’t worthy for our chain, not even worthy for our investments!!!
EVEN: If the rate of exchange would be 10 times more, Gnosis holders would sell their tokens before that happens (as it would bring heavy price decrease on Gnosis). So other higher offers make no sense! Just as much doesn’t make sense that we, a LOW CAP GEM project would give up on our community & our chain to make an already 6.3B FDMcap project go further.
Obviously many of us are here for the long term, not for an 2x. If that would be possible & the growth rates would make it possible, I would be there 3 years later too.
xDai chain’s community is unique, our chain’s dual token structure is unique, our tech getting ahead in the cryptospace & is unique.
This Gnosis merge is unique too haha because I didn’t see such a try to steal before from STAKE holders! If there will ever be a vote, please make sure that 250K STAKE will not be used to vote from Gnosis’ side as they got it from ecosystem fund, not to take over our loved community and chain.

NO TO THE IDEA OF THE MERGE!
YES TO UPDATES TO GO LIVE
YES TO REBRANDING
YES FOR MARKETING
YES FOR SUCCESS
YES FOR LAMBO
YES FOR BIG LOVE FOR THE COMMUNITY
NO TO THE IDEA OF THE MERGE!

Please stand up for xDai chain & our precious STAKE!
Did we buy & hold it for throwing it away? No!
This is blood diamond, a truly low cap gem. :star_struck:

16 Likes

If xDai merge would bring Gnosis a jump from 1B mcap(6B FDMcap) to 10B mcap(60B FDMcap) with our updates…
Don’t tell me STAKE doesn’t have higher chance to go from 130M mcap(160M FDMcap) to reach 1,3B mcap(1,6B FDMcap) LOL
Gnosis using the timing to come up with this because it is reacheing new ATHs already. That offer made by the Gnosis price ATM. Why would we take it? Do we like to buy high sell low? Why would we even take a higher offer from them? The bigger the offer, it makes the bigger dump, from Gnosis holders who will aim to buy STAKE instead & than convert etc.
Which makes sense? 1,6B fully diluted market cap xDai chain STAKE or an 60B fully diluted market cap Gnosis? 1,6B STAKE or 60B Gnosis? Even if it would be 60B Gnosis, they need our tech updates. If Gnosis’ lead would be stupid, they would not make this offer. This offer is worthy of Gnosis holders, not even worthy to talk about for STAKE holders.
While we even talk about it?
Than let’s talk about being a Polygon Parachain! I would love that topic a lot more than Gnosis trying to cheat us out of our fortune for their own benefit. Not a single reason to accept Gnosis merge. GNO potential is super crap considering STAKE potential as GNO needs what STAKE has to grow.
This talk & vote just makes people understanding that STAKE is undervalued, with the great potential to the upside. Call Gnosis a gem and I will laugh. Plus, you are saying if they offer more you will accept it. Ok. The more they offer the more correction comes. We ending up with the same terrible options.
It’s a no brainer that we even talk about this deal…
PS: If it ever comes to a vote, make sure that Gnosis doesn’t use the ecosystem funds given to them to vote on their side.

5 Likes

It would be pretty epic & not even far away (Aave builds on xDai chain already). It’s already started to be the ‘canary chain’ of ETH. Would be pretty epic if this becomes a reality & everyone notices xDai chain as the ‘build on’ basic than bring to Ethereum.
Most epic would be adding: Being a parachain for DOT or Kusama, while being the canary network for ETH. :blush:

Huge NO for the merge, and huge YES for being a parachain on Kusama/DOT, while being the ‘canary chain’ for Ethereum!
Maybe all of this Gnosis thing bringed us together to end up with this idea! LETS GO PARACHAIN <3

7 Likes