NounsDAO: Treasury split looms as dissatisfied members seek ETH share

09.12.2023
NounsDAO: Treasury split looms as dissatisfied members seek ETH share

In an unprecedented move, NounsDAO, a leading DAO-run Nouns NFT project, faces a treasury split on September 15. Disgruntled holders, considering a “rage quit” amid the bear market, are pushing for a more favorable rate for their NFTs from the project’s substantial ETH holdings. Key figures include DCFGod, who possesses 28 Nouns.

Over 333 Nouns back the idea of “forking” NounsDAO NFTs due to the growing frustration. Consequently, 333 dissatisfied DAO members are seeking a portion of the project’s 30,620 ETH tokens, worth around $50 million. Currently, the Nouns NFT floor price stands at approximately $56,600 (36.5 ETH), making the fork’s treasury an impressive $18.65 million (11,822.80 ETH).

This move demonstrates how DAOs respond to investor concerns about project viability, particularly when digital assets are undervalued. Such projects attract activist traders looking to capitalize on overlooked collectibles. This treasury split resulted from a recent update called v3, allowing disgruntled investors an exit strategy while preserving their financial interests.

As DAOs continue to shape the NFT landscape, they set standards for sustainability amid challenges. A unique scenario unfolds in the NounsDAO world as hundreds of holders demand refunds, leading to a potential treasury split that could jeopardize the project’s future.

Role of NounsDAO in the project

NounsDAO’s treasury is essential for the project’s long-term growth and prosperity, having funded over 158 projects and proposals. If the treasury continues to shrink, its future may be at risk. According to “rage quit” rules, if 20% of Nouns NFTs demand a “fork,” they can break away and claim their stake. Auctions for Nouns currently hover around 35-36 ETH.

Presently, 334 Nouns support the “fork” with four days left. This translates to nearly 40% of Nouns seeking an exit, commanding a treasury worth about 11,858 ETH, causing significant financial repercussions.

The NFT community speculates that NounsDAO’s challenges may signal potential issues for other decentralized autonomous organizations. Still, some believe this “exit” could provide short-term liquidity to the NFT market, returning thousands of ETH to NFT enthusiasts.

This pivotal moment for NounsDAO traces back to the approval of the v3 upgrade, allowing disgruntled investors to exit peacefully through forking. The consequences of this decentralized governance experiment are unfolding, with the crypto world closely monitoring NounsDAO’s developments.

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