I have acquired a large amount of GEN over the last few months, but now have less use for it given that I have made a redemption balancer for my DXD. I wondered if DXdao would want to buy the GEN OTC (via a Member Balancer) at the same cost as what I acquired it for. Having spoken to a few REP holders, it seems that there is enough support to gauge sentiment publicly. DXdao would be better protected from GEN-related issues if it owned a large part of the GEN supply if it owned a substantial amount. Given that the alternative to this proposal is myself setting a limit order on 1inch, I personally believe the DAO would be better served owning the GEN, so have decided to give DXdao first option.
$11.2k + $3k + $5k = $19.2k for 1,455,648 GEN (my total balance). Note that there is also 50k or so GEN still downboosting a couple of my duplicate proposals, which I will only get back in 16 days. I’m also happy to also send those over to the DAO upon receiving them back.
Although slightly above the illiquid spot price, this would be a much better rate than if trying to buy $19.2k worth on the open market (plus, given the illiquidity of GEN and DXdao’s 16 day proposal time, leaves any public order susceptible to frontrunning):
I think it makes sense for the DXdao community to acquire this GEN. As was discussed on the call, it might not make sense for DXdao to hold all of this GEN directly because then it can’t do anything in the event of a “GEN attack”. Having GEN in the hands of DXdao stakeholders would insulate against this. The newly formed guilds are a perfect place to hold the GEN, especially as these guilds could soon do proposals directly to DXdao.
To complete the sale, there will need to be a proposal and funds from the treasury. That proposal should say where the GEN ends up going. A potential breakdown:
% share
Mainnet address
DXdao
40%
0x519b70055af55A007110B4Ff99b0eA33071c720a
Voice Guild MS
12%
0x00Ce8162527Da8bD59056E2A54C3726886cBa676
Operations Guild MS
12%
0x22F3BB8defB1B9A6c18da5E1496cd1b15fc79d70
Swapr Guild MS
12%
0x76a48beCaD072b90761859bd2C517A7395775103
Carrot Guild MS
12%
0x975e8af284fcFEE19326a26908B45BD2fce1Cef0
DXdao Dev MS
12%
0x9467dcFD4519287e3878C018c02f5670465a9003
Note the DXdao Dev MS is being used in lieu of DXgov Guild address
The only thing I’m wondering about is price. I know that is the price that Connor paid for it, but I doubt there are any other buyers of GEN at that price besides DXdao?
Unless there is someone willing to pay the price Connor was, but that was because there was a serious financial interest for Connor to hold GEN, so only another buyer with similar interests would probably pay that much?
It feels like something between current market price ($0.08) and what Connor paid for it ($0.131) would be right. $0.105 per GEN?
I’ve had a couple of people DM me about the GEN, but figured I’d give DXdao first option before entertaining their advances and discussing prices. I wouldn’t be willing to sell for anything under breakeven ($0.131) on my side, and would rather put it up as a limit order and wait for somebody to bite. Happy for DXdao to make a decision based on this price, but definitely wouldn’t be willing to go lower. I guess my counter to ‘I doubt there are any other buyers of GEN at that price besides DXdao?’ would be the reverse; it would cost DXdao over $30k to buy this much GEN on the open market.
