The Nouns has been thwarted in half in a split

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The Nouns has been thwarted in half in a split

The Nouns, a highly influential and well-funded NFT project, has been thwarted in half, with many large holders opting to leave the project completely after a series of governance maneuvers.

First came a fork, which was completed on Friday - 472 Nouns, NFTs which grant membership to the NounsDAO, voted to split off and create a new decentralized organization with a pro-rata share of the project's nearly $50M treasury.

Over the past three days, over 60% of the defectors redeemed their NFTs for nearly $50,000 worth of assets per token. In total, that amounts to more than $14 million, leaving the new fork with almost $11 million of its treasury.

It also holds the original Nouns NFTs. In exchange for a new Nouns token, holders who chose to leave were required to leave the tokens in the treasury. NounsDAO, like the new DAO, doesn't offer a 'rage quit' option.

However, at the end of the day, however, this could be considered a favorable outcome for most stakeholders, Maria Shen, general partner at venture firm Electric Capital, said in a statement.

s being held as a hostage. The investor added that the fork functionality makes it so those who chose to stick around the original DAO are likely to be more aligned in terms of the organization's direction.

It's also remarkable that the majority of members chose to stick with the original DAO, with the fork pushed forward by a few large Nouns holders. So far, just five people have redeemed 152 Nouns, representing over half the defections.

Toady Hawk, another Noun who decided to stick with the original DAO, said they were optimistic about the organization's post-fork direction. 's a great opportunity for the DAO,' they said on friend.tech.

In 2021, Nouns launched with distinct mechanics - instead of a drop of 10,000 tokens as was typical at the time, one Noun would become available for bidding each day. The winning bid would go into the NounsDAO treasury and the auction winner would gain voting rights over that treasury.

The Nouns treasury has been one of the most active in crypto - NounsDAO has funded 158 initiatives, according to Nouns.center. These projects span from an episodic movie to an analytics dashboard and augmented reality filters.

0xhindsight.eth, who joined the fork with Noun 501, says that many of the most engaged members of the DAO are leaving thanks to the organization's lack of direction.

Some other forkers were more succinct.

The Nouns fork is a different kind of blockchain fork that created Bitcoin Cash and Ethereum Classic because users had to make a choice - when Bitcoin forked into Bitcoin Cash users got to keep both BTC and BCH - with the Nouns fork, users can only choose one side.

To engage in a fork, support must consist of at least 20% of Nouns.

A rage quit in crypto is different from a 'rage quit' in crypto, which refers to someone leaving an organization with a pro-rata share of the treasury.

Shen said she regrets leaving the bank by directly removing assets from the treasury. Rage quitting also means a person does not need to find a buyer for their assets, as the treasury is programmed to accept redemptions.

While both DAOs are grappling with reduced treasuries, a major takeaway from the fork is that Nouns' relatively simple mechanics have given rise to a complex system.

As a building blocks for other projects, applications that serve as building blocks have tended to cement themselves in the crypto space, Uniswap has attracted a diverse array of projects and strategies built on top of its decentralized exchange.

The Nouns fork is another example of the expanding functionality of the Nouns ecosystem.

Shen pointed out that there's a distinct difference between the two DAOs.