GIP-86: Should the GnosisDAO commit to additional rETH usage in treasury operations?

Executive Summary

Gnosis DAO / Chain has decentralization as its core ethos, focusing on a distributed validator set for the chain and an open DAO structure run by GNO holders. Despite this, our Treasury has nearly all of its staked ETH assets sitting with LIDO as stETH. Given the success of RocketPool Protocol in creating a massively decentralized validator set through rETH and RPL, this proposal recommends that Gnosis DAO commit to moving at least 50% of their stETH holdings to rETH holdings over time in order to support Ethereum decentralization and reduce single protocol and “bad actor” risk that comes from Lido’s limited node set (29 nodes vs Rocket Pool’s 2550 and growing nodes). Introduction

As of last notice, the Gnosis Treasury (managed by Karpatkey) holds 64,124 wstETH (~$130mm) and 5,725 stETH (~$10mm), 712 rETH (~$1.4mm), and 18,622 ETH. Full report here: 20230424 - karpatkey’s Weekly Report on GnosisDAO Farms.pdf - Google Drive 1 This concentrated holding of a centralized staking provider token is a risk to Gnosis DAO and against the DAO’s core ethos of decentralization. This GIP is intended to direct Karpatkey to move to reduce stETH dependency and introduce additional rETH into their DeFi strategies in order to reduce risk to the DAO and provide support to decentralized ethereum staking. Proposed Changes

The Gnosis DAO will instruct Karpatkey to reduce stETH dependency and increase staked ETH diversity, but WILL NOT dictate how this is best accomplished. Karpatkey, once instructed, will move forward with whatever strategies are in the best interest of the DAO to reduce stETH exposure and provide additional usage of rETH / RocketPool