Gearbox Secures $4.15M Investment Funds
Gearbox secures $4.15M investment funds due to the DAO Strategic Diversification Round with participation from legends like Placeholder, Zee Prime, LedgerPrime, Polymorphic, and GCR.
An expenditure of ±2.67% of the tokens was done at a valuation of $150 million. With a one-year cliff and one-year vesting. This was after we had a round of voting through the DAO.
As the process went through, it became apparent that US-domiciled parties neither have the framework to get involved in a no-legal-counterparty-DAO round nor would some DAO members feel safe taking on personal risks. As such, A Capital and Galaxy Digital could not complete the procedure.
That isn’t a significant issue at all as the protocol is already earning some revenue and doesn’t have 50 operators feeding off the treasury! So the runway the DAO has is over a year. That is not counting anything on the token side, revenue by the protocol, and so on. See more in the last section.
GEARBOX LIKES BUILDING
Gearbox needs governors to manage what we build. That is where active governance comes to play. Recent voting events related to the DAO have seen close to 2000 participants, with an astonishing ±33% of the token holders having voted! That’s a fantastic turnout compared to the most active OG DeFi protocols.
An excellent way to put your tokens to good use is to find delegates with less than ±2 million votes and delegate towards them. This allows a broader set of users to contribute to governing. So make delegation great again, MDMA.
A number of crucial decisions around the DAO were taken in the past few months. Core contributors of Gearbox DAO have their compensations clearly laid out. That puts the contributor count to 15+, with 7 developers (2 smart contracts, 3 backends & analytics, 2 frontends). The total amount granted per month is based on the amount of time each contributor spends. GEAR tokens given will have vesting tied to them.
GEARBOX PROPOSAL
Gearbox has also had a proposal to have Gearbox contracts audited by Consensys. A total of $240k will be spent from the DAO treasury towards ensuring the smart contracts are vetted and safe to use. The payment is split into two phases, with $120k given upfront and another $120k when the audit report is delivered. The audits have already begun, and we should be hearing back soon. The other audits (FYI, V2 will have three audits at the start) have been funded by ex-core remaining funds and do not require the DAO to spend its money on them.
As the Gearbox ecosystem inch closer to V2, there has been a need for individual metaDAOs to emerge. These will be specialist DAOs that take care of the more minor decisions without requiring consensus across the DAO.
ABOUT Gearbox
Gearbox Protocol allows anyone to get leverage in a decentralized way. Uses it across various other protocols in a composable way via margin trading, leverage farming, etc.
RESOURCES
