A unique uprising is unfolding in the world of NounsDAO. Hundreds of NounsDAO holders are calling for a refund, leading to a potential treasury split. Due to the number of holders who are in favor of exiting, division of the project’s treasury seems inevitable.
This treasury exists for NounsDAO participants to “allocate resources for the long-term growth and prosperity of the Nouns project.” The NounsDAO treasury has funded over 158 projects and proposals to date, and the future of this will be in jeopardy if the treasury continues to shrink.
According to NounsDAO’s “rage quit” rules, if 20% of Nouns NFTs unite in their demand for this “fork,” they possess the authority to break away from the collective and claim their rightful stake in the project. When the fork concludes, holders will be able to split from the main group and take their share of around 35 ETH each. Auctions for Nouns have been currently around the 35-36 ETH range.
At the time of writing, there are currently 334 Nouns in the “fork,” with four days remaining. The current fork treasury is worth around 11858 ETH. 334 Nouns brings the percentage to almost 40% of Nouns wanting to leave the organization.
The financial ramifications are nothing short of staggering, with the current fork treasury commanding a worth of approximately 11,858 ETH.
The crypto community is voicing the unsettling notion that if NounsDAO, one of the most successful and well-known DAOs, is facing this challenge, it might not be hopeful for the future of other decentralized autonomous organizations.
However, according to user NiftyNoonNFT, there might be a silver lining in the situation that helps the NFT market in the short term. “[NounsDAO] exit may be a small liquidity event that helps the market,” they said in a tweet. “There will be thousands of ETH returning to the hands of NFT-natives.”
This intriguing juncture in NounsDAO’s journey can be traced back to the approval of a sweeping upgrade known as v3, a pivotal decision that bestowed upon disgruntled investors the recourse of peaceful exit through forking—a mechanism designed to safeguard the interests of all stakeholders. The ramifications of this experiment in decentralized governance are still unfolding, and the eyes of the crypto world remain firmly fixed on NounsDAO, watching to see the latest update.