Nouns split into a new NFT group

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Nouns split into a new NFT group

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

First came a fork, which was completed Friday - 472 Nouns, NFTs that 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 last three days, over 60% of the defectors redeemed their NFTs for nearly $50,000 worth of assets per token. In total, the new fork's treasury is $1.4 million, leaving it with nearly $11 million.

It also holds the original Nouns NFTs. holders who opted to leave were required to leave the tokens in the treasury in exchange for a new Nouns token. Unlike the new DAO, NounsDAO does not offer a 'rage quit' option.

But at the end of the day, Maria Shen, general partner of venture firm Electric Capital, said: At the end of the day, this could be considered a favorable outcome for most stakeholders.

s being held as a hostage. The investor said that the fork functionality makes it so that 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 noteworthy that the majority of members chose to stick with the original DAO, with the fork pushed forward by a few big Nouns holders. Of those who redeemed 152 Nouns, only five redeemed it, representing more than half the defections.

Toady Hawk, a 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 every day. If the winning bid was accepted, the ETH 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, with NounsDAO funding 158 initiatives. These projects range 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 different from blockchain forks like 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 initiate a fork, support from at least 20% of Nouns is required.

Forking 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 that by directly removing assets from the treasury, rage quitters hurt the organization they're leaving from. Rage quitting also means a person doesn't need to look for a buyer for their assets, as the treasury is programmed to accept redemptions.

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

Uniswap's decentralized exchange has attracted a broad range of projects and strategies built on top of its decentralized exchange, which serves as a building block for other projects.

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

The two DAOs differ, she pointed out, and that there's a distinct difference between them.