A unique uprising is unfolding in the world of NounsDAO. Hundreds of noun DAO holders are asking for repayment, leading to a possible sovereign bond split. Due to the large number of shareholders in favor of an exit, a 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 more than 158 projects funded and proposals to date, and their future will be in jeopardy if the treasury continues to shrink.
According to NounsDAO’s ‘rage quit’ rules, if they unite in their demand for this ‘fork’, they possess the authority to break away from the collective and claim their rightful share of the project. When the split ends, holders can split from the main group and each take their share of approximately 35 ETH. Auctions for nouns are currently around the 35-36 ETH range.
At the time of writing, there are currently 334 nouns in the ‘fork’, with four days to go. The current fork treasury is worth approximately 11858 ETH. With 334 nouns, the percentage is almost 40% of the nouns who want to leave the organization.
The financial implications are nothing short of staggering, with the current fork treasury valued at approximately 11,858 ETH.
The crypto community does expressing the disturbing idea that if NounsDAO, one of the most successful and well-known DAOs, faces this challenge, it may not be hopeful for the future of other decentralized autonomous organizations.
However, according to user NiftyNoonNFT, there could be a silver lining in the situation that helps the NFT market in the short term. “[NounsDAO] The exit could be a small liquidity event that helps the market,” they said in a tweet. “Thousands of ETH will return into the hands of NFT residents.”
This intriguing moment in NounsDAO’s journey can be traced back to the approval of a major upgrade known as v3, a crucial decision that allowed disgruntled investors to peacefully exit the market through forking – a mechanism that is designed to safeguard the interests of all stakeholders. The consequences of this experiment in decentralized governance are still unfolding, and the eyes of the crypto world remain firmly on NounsDAO, watching for the latest update.
