# CIP-73: General Authorisation & Confidence Mandate to Sell CoW DAO’s Stake in MEV Blocker
**URL:** https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222
**Category:** Closed Proposals
**Tags:** cip, proposal, successful
**Created:** [October 22, 2025, 5:11pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222 "2025-10-22T17:11:13Z")
**Posts on this page:** 15
**Page:** 1
### Author:  [@Kowrigan](https://forum.cow.fi/u/Kowrigan)
#### Post date: [October 22, 2025, 5:11pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/1 "2025-10-22T17:11:13Z")
```auto
CIP-73
Title: General Authorisation & Confidence Mandate to Sell CoW DAO’s Stake in MEV Blocker
Author(s): Kowrigan
Status: Voting
Created: 2025-10-22
```
## **Simple Summary**
This CIP asks CoW DAO to reaffirm the mandate that the core team, through CoW Foundation and its subsidiaries, has to negotiate and execute a sale of MEV Blocker on CoW DAO’s behalf.
## **Motivation**
MEV Blocker was jointly launched in collaboration with [beaverbuild.org](http://beaverbuild.org) in April 2023. MEV Blocker extended CoW DAO’s mission to protect crypto users from bad outcomes and, in a very short time, gained significant traction (frequently topping 4% of all Ethereum transactions). The project has also benefited CoW DAO financially, generating over 1680 ETH (split between CoW DAO and [beaverbuild.org](http://beaverbuild.org)) in under 2.5 years.
Despite its success, recent exciting developments in the DEX market have led the core team to prioritise their time on the growth and development of CoW DAO’s original two products: CoW Protocol and CoW Swap. This, coupled with the fact that core team members have been approached by interested buyers over the lifespan of MEV Blocker, have led to the conclusion that now might be a good time to explore a sale of MEV Blocker on behalf of CoW DAO.
A sale of CoW DAO’s stake in MEV Blocker at a fair price would streamline operations, reduce non-core overhead, and convert MEV Blocker’s current value into treasury assets that can be reinvested toward developing CoW DAO’s core business.
A sale to a qualified team – one with the interest, energy, and skillset needed to steward the development of MEV Blocker far into the future – is in the best interest of CoW DAO, given the high degree of trust that users, searchers, and builders have placed in the product to-date.
CoW Foundation and its subsidiaries have an implicit mandate to act in the strategic best interest of the DAO at all times. However, given the significance that a sale of a business interest can have on the strategic direction of the DAO, and given the need for discretion when sharing sensitive business information during any M&A process, CoW Foundation is asking CoW DAO to reaffirm its mandate to solicit qualified buyers for MEV Blocker, negotiate favorable terms, and ultimately authorise a sale of MEV Blocker on behalf of CoW DAO.
## **Scope & Definitions**
- **MEV Blocker Activity:** the commercial/business activity branded “MEV Blocker,” including brand/domain(s), documentation, commercial materials, operational know-how, customer/partner relationships, and any Foundation-owned systems, data, and accounts used exclusively for that activity.
- **Foundation Assets:** any rights, data, and materials owned or controlled by the Foundation or its controlled entities that are specific to the MEV Blocker Activity.
- **Excluded:** DAO governance systems, CoW-wide shared infrastructure, COW-token-specific systems, and any third-party assets not owned/controlled by the Foundation.
## **Specification**
Passage of this CIP authorises CoW Foundation (or a designated controlled affiliate) to market, negotiate, and sell CoW DAO’s 50% stake in MEV Blocker to one or more buyer(s), at the best-obtainable terms, and to remit CoW DAO’s share of net proceeds to the CoW DAO Treasury. This is a community confidence mandate acknowledging the Foundation’s capacity to execute such a sale while explicitly endorsing the disposal.
- **Authority to Sell.**
The DAO authorises CoW Foundation (the “Implementation Entity”), or a designated controlled affiliate, to:
(a) solicit indications of interest, run a sale process, negotiate, and enter into one or more definitive agreements (e.g., asset purchase, assignment, or else) for the sale of Foundation Assets comprising the MEV Blocker Activity; and
(b) take all ancillary steps customary for such transactions (diligence, assignments, filings, and transitions).
- **Guardrails & Protections.**
- **Proceeds & Funds Flow.**
- **Reporting & Transparency.**
- **Authority Scope; Non-Material Changes.**
## **Rationale**
- The DAO’s core priority is CoW Protocol and CoW Swap and there is a large, achievable opportunity to accelerate the core business with focused effort on product and growth (e.g. through network expansion, partnership development, and the deployment of CoW Protocol v2); divesting a non-core activity improves strategic focus and capital efficiency.
- The Foundation already serves as the DAO’s legal interface and treasury implementer; this CIP provides a clear, community-backed mandate of confidence to execute a sale process and finalise a transaction on buyer-agnostic, best-terms basis.
- Proceeds strengthen the DAO Treasury, supporting core roadmap execution.
## **Security & Compliance Considerations**
No custodial user funds are implicated. Standard transactional diligence, data-transfer compliance, and sanctions checks apply.
---
### Author:  [@middleway.eth](https://forum.cow.fi/u/middleway.eth)
#### Post date: [October 23, 2025, 7:41am UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/2 "2025-10-23T07:41:48Z")
I would like to express my support of this CIP. It feels like the right move at the right time.
Allowing the team to focus 100% on core products like CoW Protocol and CoW Swap is super beneficial for long-term success. Plus, divesting MEV Blocker now brings in revenue that can directly support the DAO’s operations and fund all the exciting growth planned.
---
### Author:  [@notsoformal](https://forum.cow.fi/u/notsoformal)
#### Post date: [October 23, 2025, 10:06am UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/3 "2025-10-23T10:06:59Z")
Supporting this proposal.
As the DeFi market becomes more competitive, I feel that the Core team focusing on the core DeFi products is key to ensure longer term profitability and growth potential to CoW DAO.
Also, having the treasury build up will allow for further growth and research initiatives to be pursued.
---
### Author:  [@marshy](https://forum.cow.fi/u/marshy)
#### Post date: [October 27, 2025, 6:48pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/4 "2025-10-27T18:48:31Z")
This proposal sounds smart to me, and in the interests of CoW DAO. I especially like the focus on finding a qualified team to steward the product for existing users.
---
### Author:  [@karolak](https://forum.cow.fi/u/karolak)
#### Post date: [October 29, 2025, 4:10pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/5 "2025-10-29T16:10:50Z")
Well at what price? It is hard to decide whether selling shares is worth without knowing the minimum price cow dao is asking.
---
### Author:  [@Kowrigan](https://forum.cow.fi/u/Kowrigan)
#### Post date: [October 29, 2025, 5:46pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/6 "2025-10-29T17:46:34Z")
Thank you @Karolak, that’s a fair question, and one that we’ve deliberately left open at this stage.
Because MEV Blocker is a unique asset with no direct market comparables, setting a minimum price would risk either anchoring negotiations too low or deterring qualified bidders before we’ve had a chance to gauge genuine market interest.
The goal of this CIP is not to pre-approve a specific transaction but to reaffirm the Foundation’s mandate to **run a structured sale process** on behalf of the DAO engaging with potential buyers, benchmarking valuation ranges, and negotiating terms in the DAO’s best interest.
Once a serious offer materialises, the Foundation will report back to the community with a high-level summary of the outcome, including proceeds remitted to the DAO Treasury, ensuring transparency without compromising the confidentiality required in commercial negotiations.
In short: this CIP asks the DAO to approve the **process and mandate** , not to fix a price before discovery. The Foundation’s fiduciary duty is to secure _fair market value_ through competitive, arm’s-length discussions.
---
### Author:  [@valloderbabo](https://forum.cow.fi/u/valloderbabo)
#### Post date: [October 29, 2025, 8:26pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/7 "2025-10-29T20:26:40Z")
The CIP only mentions that the funds will go to the Treasury. Is there already a plan or proposal in mind for how these funds might be used?
For example, would the team or DAO considered allocating part of this extra funds in case of a sell to buy and burn COW tokens, as a way to strengthen the token economy while still keeping enough liquidity for future initiatives?
---
### Author:  [@cp0x](https://forum.cow.fi/u/cp0x)
#### Post date: [October 31, 2025, 4:15am UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/8 "2025-10-31T04:15:40Z")
I voted FOR
I find it quite strange that there is no minimum valuation for the project.
However, It seems to me that the Foundation is also interested in selling at a high price, since the DAO could use these funds to finance their activities and grants for protocol development, among other things.
The Foundation also bears reputational and legal risks if a bona fide transaction is not reached.
---
### Author:  [@notsoformal](https://forum.cow.fi/u/notsoformal)
#### Post date: [October 31, 2025, 11:31am UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/9 "2025-10-31T11:31:51Z")
Hi @valloderbabo ,
The current treasury strategy is to ensure 28M USD in stables for DAO runway, which are used for yield farming (further update to be made in a separate post). The goal is to ensure there is sufficient funds for 2 years of development and maintenance, Grants, and Foundation running.
This CIP specifically asks for a mandate to “go to market”, and as discussed in Discord, in the Core Team view we should focus on maximising here the value to the DAO, get the deal done. Parallel to this, let’s continue the discussions on value distribution and tokenholder alignment.
---
### Author:  [@valloderbabo](https://forum.cow.fi/u/valloderbabo)
#### Post date: [October 31, 2025, 2:24pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/10 "2025-10-31T14:24:39Z")
I’m in favor of the MEV Blocker sale — this CIP should stay focused on authorizing that deal and securing the DAO’s runway, which is absolutely the right move.
That said, as discussed in the Governance channel, the **next step** should be for the COW team to present a clear plan on how the token can actually benefit from the DAO’s success. The current buyback model clearly isn’t having an impact on $COW’s value, so it’s time to explore a **new, more effective mechanism** that truly aligns the token with protocol growth.
---
### Author:  [@Kowrigan](https://forum.cow.fi/u/Kowrigan)
#### Post date: [November 11, 2025, 2:34pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/11 "2025-11-11T14:34:43Z")
This CIP successfully passed the [snapshot vote](https://snapshot.box/#/s:cow.eth/proposal/0xa0c0ff5d93f3e366203c80eba2fe7571f938cc1f6785396e17dd1a043fee7e28).
---
### Author:  [@tanglin](https://forum.cow.fi/u/tanglin)
#### Post date: [November 27, 2025, 12:49pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/12 "2025-11-27T12:49:32Z")
would be great to get the info on the deal
---
### Author:  [@karolak](https://forum.cow.fi/u/karolak)
#### Post date: [December 8, 2025, 7:09pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/13 "2025-12-08T19:09:48Z")
would be great to get the info on the deal
---
### Author:  [@Kowrigan](https://forum.cow.fi/u/Kowrigan)
#### Post date: [December 10, 2025, 2:43pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/14 "2025-12-10T14:43:28Z")
Hi everyone, I wanted to provide a quick update on the status of the MEV Blocker sale following the authorisation granted by CIP-73.
The Foundation has successfully identified a buyer for MEV Blocker. The deal is effectively closed; however, the formal change of ownership and final transaction details are still being processed. Given the complexity of the transfer and the upcoming end-of-year festivities, we expect this administrative phase to take a little more time to conclude.
We are confident that this deal represents a fair value for the asset and is highly beneficial for CoW DAO. While we are eager to share the full specifics, we must wait until the transition is complete and the buyer is ready for official communication before releasing those details.
The Foundation will publish a comprehensive official announcement as soon as the process is finalised.
Thank you for your patience!
---
### Author:  [@CoW\_Foundation](https://forum.cow.fi/u/CoW_Foundation)
#### Post date: [January 28, 2026, 1:32pm UTC](https://forum.cow.fi/t/cip-73-general-authorisation-confidence-mandate-to-sell-cow-dao-s-stake-in-mev-blocker/3222/15 "2026-01-28T13:32:46Z")
### **MEV Blocker has been acquired by SMG (Consensys) — Closing update (CIP-73)**
**TL;DR**
- Special Mechanisms Group (SMG), a Consensys division, has acquired the MEV Blocker infrastructure.
- This post is the closing update contemplated by CIP-73 (sale mandate + post-closing transparency).
- CoW DAO is divesting a non-core activity to focus on CoW Protocol + CoW Swap, while supporting a smooth transition for MEV Blocker users.
* * *
On **January 23, 2026** , SMG announced it had **acquired MEV Blocker**. SMG is described as a Consensys division focused on blockchain microstructure research (with Consensys behind MetaMask, Linea and Infura). ([smg.org](https://www.smg.org/memo/mevblocker))
The SMG announcement also reiterates MEV Blocker’s scale and user impact (e.g., millions of users served and thousands of ETH in rebates paid out to users).
CIP-73 gave CoW Foundation a community confidence mandate to market, negotiate, and sell MEV Blocker at best obtainable terms, and to remit CoW DAO’s share of net proceeds to the CoW DAO Treasury (with a commitment to publish a closing notice after completion).
CIP-73’s motivation was to:
- streamline operations and reduce non-core overhead,
- convert MEV Blocker’s value into treasury assets to reinvest in CoW’s core products, and
- ensure MEV Blocker ends up with a technically excellent, mission-aligned steward.
## **Financial Disclosure**
The total purchase price was negotiated as a combination of USD and ETH installments, totaling roughly **$9.1M.**
As MEV Blocker was a joint effort, these proceeds are shared 50/50 with CoW DAO’s technical partner. Consequently, CoW DAO’s share of the net proceeds is approximately **$4,56M**
These funds are being transferred to the DAO Treasury address on Ethereum mainnet as previously outlined.
### **A Note from the CoW Foundation**
CoW Foundation wishes to extend its warmest congratulations to the **Core Team and CoW DAO’s technical partner** for their tireless work in building MEV Blocker from a bold idea into an industry standard, and for successfully navigating this complex divestment.
We are thrilled to see the project land with **SMG and Consensys**. We have full confidence that they will honor and expand upon the legacy of MEV Blocker, continuing to protect users from the “dark forest” of the mempool. While CoW DAO narrows its focus to the next frontier of intent-based trading, we look forward to seeing MEV Blocker flourish under its new stewardship.