Important Update from gmgn

Dear gmgn community.

We wanted to update you on the status of gmgn supply co. After much discussion, we’ve decided to make the difficult decision to pause the continuation of gmgn. We know this news may be disappointing, but it is the best option given the circumstances.

We have decided to take this pause for a few key reasons. Firstly, current market conditions have made it difficult for us to raise the capital we need to continue growing a startup business.

We planned to launch the parentDAO NFT as the next phase of our roadmap, enabling us to activate the business and raise the working capital needed to launch our initial subDAO products. However, after months of planning and strategizing the best approach, our research continued to cast doubts that there would be enough appetite for a DAO mint at both the price point and scale needed.

Finally, while our community of early adopters is inspiring, we have yet to reach a point where we feel the community is large enough and engaged enough to form a fully decentralized and operational DAO. A strong community is the backbone of any successful web3 business; in the current market, that wasn't proving easy to scale up.

Our core team has put in tremendous time and effort over the past year. Unfortunately, we can no longer sustain this work full-time and unpaid. Over the last year, the four team members collectively received USD$117,261 in compensation, but the majority of time spent on the business has been unpaid.

With a vision to launch 100+ consumer goods, this business model requires full-time focus and can not be a “side project.”

We plan to re-assess the situation in six months. At that point, we will take a fresh look at market sentiment and whether we believe it is feasible to resume.?

We are proud of the progress to date. Over the past 13 months, we achieved several significant milestones:

• Built a compelling identity and brand story for the parent gmgnDAO and initial brands (to become product subDAOs).?
• Accepted into Seed Club DAO accelerator from among 200+ applicants.?
• Published the DAO’s litepaper – our vision and playbook for the DAO.
• Progressed our innovative revenue-sharing model using NFTs as the future of loyalty programs to incentivize participation, governance, and community-driven marketing.
• Built a storefront on Shopify that supports “token-gated” commerce.
• Created an NFT Minting site for our Genesis Mint.
• Negotiated the first-ever web3 marketing partnership with the United Nations World Food Program.
• Attracted the attention of the media, as well as traditional CPGs and their agency partners.
• Hosted a massive in-person community event during the NFTNYC conference that generated 2,000 Premint signups.
• Conceived and shipped OnChain Chocolate, a premium dark chocolate bar and the DAO’s first brand, to our Genesis Mint pass holders.

We’ll keep the Shopify site live but need to pause the token-gating feature to reduce our burn rate further. Before we do that, we want to give you more free chocolate! We’ll soon announce the opportunity for all Genesis Token holders to claim additional OnChain Chocolate Bars even if you already claimed against your NFT.

As for our finances, we have approximately USD$13k in the treasury. We’ll retain about $3k to keep the lights on for six months. As for the remainder of our funds, we plan to give Genesis NFT holders a chance to burn their NFT and have a portion of their purchase reimbursed. Given that we’ll be sharing ~$10k among those that opt-in to this, it may not be a lot per person.

This will impact where we stand financially in six months, but it is the right thing to do.

All of us strongly believe in the potential of gmgn supply co, we have built up such a strong basis for an entirely new CPG business model, and it will be a shame to see all of that go to waste. We remain committed to exploring all options to make it a success when the time is right.?

We are grateful for your support and hope you continue believing in us.

Sincerely,

gmgn core team