- The Ground Floor
- The $50 Million Fork
The $50 Million Fork
Breaking down NounsDAO move to allow collectors to leave...
In today’s edition of The Ground Floor we are breaking down the impact of NounsDAO allowing collectors to leave the DAO…
NounsDAO $50 Million Fork
833 Nouns have been minted since the 8th of August 2021.
Each day, a new Noun is auctioned off, with the lowest priced Noun selling for 22.66 ETH and the top sale reaching 613.37 ETH.
Building A Brand
In total NounsDAO has raised 65,000+ ETH ~ what makes NounsDAO so unique is that it’s a pool of capital without an explicit purpose.
With this treasure trove of capital, NounsDAO has funded a large number of initiatives in its short history ranging from a collaboration with Pudgy Penguins, a Nouns movie & sponsoring an E-Sports team and much more.
To date, a total of 362 submissions have made it to the proposal stage of NounsDAO, with a total of 213 (58.8%) passing and receiving funding.
In total, NounsDAO has invested 36,337 ETH ($59 million) in the last 731 days.
With 29,634 ETH in its treasury today, the book value (the total treasury divided by the number of Nouns NFTs) is 35.34 ETH.
This number is significant as Nouns token holders have successfully proposed a mechanism to allow Nouns token holders to leave by forking NounsDAO and in doing so take with them the book value of their Noun.
This proposal has resulted in a significant increase in the prices people are willing to pay to win a Nouns auction, with bidders spending 33 ETH with the expectation that they will be able to redeem this Noun for 35 ETH.
With 201 Nouns voting in favor of introducing this measure to allow token holders to fork NounsDAO, and 54 voting against ~ it’s clear that there is strong support for initiative within the Nouns community.
To leave NounsDAO, a Nouns token holder will indicate a desire to fork ~ reach the required 20% quorum in a vote whereby 1 Noun NFT = 1 vote.
If successful, a pro-rata allocation of assets move to the forked DAO.
Finally, these forked Nouns can withdraw ETH from the new NounsDAO if the new DAO chooses to pass a proposal to activate withdraws.
It remains unclear how this measure will impact the morale within Nouns community in the coming weeks & months.
Long term, despite the constraint of operating with a depleted treasury, NounsDAO will retain more than sufficient resources to continue operating.
Additionally, with a new Noun auctioned off each day for the foreseeable future, NounsDAO will continue to accumulate more resources.
As such, should Nouns fall short of success ~ it won’t be for lack of resources.
💡 Web3 Roundup
P.S. What did you think of today's newsletter?
See you next time! — Matt O’Brien 👋
This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity