In a recent development, the value of Gnosis Token GNO experienced a significant 20% increase over a span of three days subsequent to an announcement made by Thanefield Capital regarding a proposed buyback worth $30 million. Initially valued at $266 on the day of the declaration, the GNO token surged to $320 within three days, only to slightly decrease to $311 at the time of composing this narrative. This digital asset holds the 111th position in the global cryptocurrency rankings, with a daily trading volume averaging $8.9 million.

Realigning Token Value through Transaction

A crypto fund has put forth a substantial share repurchase initiative aimed at aligning the market value of the token with its intrinsic book value. Thanefield Capital has suggested that Gnosis DAO utilize $30 million from its reserves over a six-month period for this purpose. The fund anticipates that this transaction will enhance the value of the GNO token, which they believe is currently undervalued in comparison to its book value.

The proposal has garnered approval from the Gnosis community, with 12 out of 14 governance forum voters expressing support for the initiative. Martin Köppelmann, co-founder of Gnosis, has also endorsed the proposal, emphasizing the importance of linking the buyback to a growth strategy.

Implementation Strategy and Potential Benefits

Upon approval, the buyback program is set to follow a dual-pronged strategy. The first phase involves allocating $15 million for the acquisition of GNO tokens over six months, exerting a daily buy pressure of approximately $83,333. The second phase will be discretionary, with $15 million earmarked for optimized purchases based on market conditions, managed by the on-chain asset management project, Karpatkey.

Thanefield Capital believes that successful execution of the proposal could realign the market value of GNO, enhance market perception, and ultimately benefit long-term holders. As of May 20, approximately 50,000 DAOs collectively held assets worth $30 billion, positioning Gnosis as the fifth largest DAO by treasury size with over $630 million in assets, trailing only behind Mantle in non-native marketable tokens.