- GnosisDAO voted to terminate its treasury management contract with KPK, with 88% in favor.
- KPK faced criticism over high fees, underperformance, and a costly liquidity pool incident.
- GnosisDAO treasury holds assets valued at over $175 million.
- KPK reported cost reductions from $6.3 million in 2024 to $2.2 million in 2025 so far.
- Community concerns focused on fee structure, reporting clarity, and risk management.
The decentralized autonomous organization GnosisDAO, which oversees projects such as Safe, CoW Swap, Gnosis Chain, and Gnosis Pay, has voted to end its partnership with treasury manager KPK. The decision was approved by 88% of voters in favor of terminating the contract. This vote followed extensive discussions about KPK’s performance and alignment with the DAO’s goals.
According to DeFiLlama data, the GnosisDAO treasury holds assets valued at more than $175 million. KPK, which began as part of Gnosis but spun off into an independent entity last year, recently announced efforts to reduce costs from $6.3 million in 2024 to $2.2 million so far in 2025. The firm also promised to focus solely on treasury and liquidity management moving forward.
Despite these efforts, community members raised multiple concerns addressed in Proposal GIP-143. Criticism included the fee structure of 1% of assets under management plus 20% of the yield generated, reported underperformance compared to benchmark assets like sUSDS and wstETH, and poor handling of liquidity pools. One significant issue involved a EURe/sDAI liquidity pool created by KPK, Gnosis, and Balancer, where a three-hour delayed oracle led to an estimated $700,000 loss from arbitrage.
Forum discussions also noted accusations of inadequate incident management during this pool event and a substantial portion of votes supporting KPK came from its employees, which some called “shameless.” Similar concerns about KPK’s performance were raised on the Ethereum Name Service forums, where total returns reportedly did not keep pace with inflation, and errors were found in yield calculations.
In response, KPK pointed to vaguely defined responsibilities when the contract began and cited measures such as removing “idle holdings” from fees and setting a $2 million fee cap. The firm acknowledged shortcomings in communication, stating “they should have delivered structured updates and clear reporting cycles.” However, some community members emphasized that the issue was performance rather than communication.
Managing treasury assets allows DAOs to outsource technical and risk-heavy functions to specialists. However, complaints about service providers charging high fees despite poor results have become common. This trend has led more DAOs to reconsider delegated treasury approaches. Industry observers have viewed GnosisDAO’s decision as a practical move focused on operational efficiency.
For further details, see the original proposal vote and discussion on the Gnosis forum.
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