GnosisDAO approves Karpatkey’s spin-off to become independent entity with KPK token

GnosisDAO voted to spin off DAO treasury risk manager Karpatkey as an independent entity, which will utilize its own KPK governance token.

Karpatkey has been a part of GnosisDAO since 2021, and during this time, it has successfully executed over 7000 DeFi transactions, managing more than $2.6 billion in treasuries without any losses or hacks, according to a statement.

Karpatkey provides treasury and risk management solutions, on-chain financial services, and support for DAO business development initiatives. It has worked with high-profile clients in the crypto space, such as Aave, Uniswap, ENS, and MakerDAO, among others.

The proposal to spin off Karpatkey into its own DAO was first made in February — now approved via an on-chain vote.

As an independent entity, Karpatkey plans to broaden its business beyond traditional Web3 services, including launching a low-cost, non-custodial, actively managed open-end fund aimed at institutional investors.

With the project forming its own DAO, KPK token holders will influence treasury management strategies.

The spin-off is also part of Gnosis’ broader strategy to support the development of blockchain applications and enhance the Web3 ecosystem.

Gnosis DAO oversees the Gnosis Chain, a sidechain running parallel to Ethereum. Previously, Safe and CoW Swap also spun off from Gnosis into its their own DAOs.