
A recent schism within the NFT finance-centric group, FloorDAO, has highlighted the challenges and disagreements that can arise within such projects.
A rift broke out when FloorDAO transferred $2.5 million from its treasury to a new faction called FloorkDAO, which had a mix of crypto tokens and NFTs.
The new group, led by activist investors and joined by many disgruntled holders, began a redemption process, offering a range of nearly $5 for each FLOOR token, a rate approaching its yearly peak. The value of the FLOOR token is currently at $3.88, said CoinDesk.
The ethos of this division can be traced back to FloorDAO's commitments to its FLOOR token investors. From Olympus DAO, FloorDAO's concept was based on the belief that its native token's worth should always remain above its treasury's value.
When the FLOOR token's price decreased below this threshold, the anticipated countermeasures were not implemented. The proposed protocol changes were proposed instead, depriving token-holders of their voting privileges and access to the treasury.
Before the rollout of this upgrade, a portion of the FLOOR community began expressing their dissent. The project reportedly pressed the project to give them an exit, seeking their treasury share.
The arrival of FloorkDAO underscores the growing influence of activist investors in decentralized autonomous organizations.
Several DAOs have faced challenges this year, with investors advocating for buyouts. Although project insiders consider this to be a threat to the DAO, activist investors argue that they are safeguarding their stakes and the interests of fellow tokenholders.
This content was partially produced with AI tools and was review and published by Benzinga editors.
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