Leading NFT project NounsDAO is on the brink of a significant treasury split. This comes after a substantial number of its NFT holders rallied for a ‘rage quit’, showcasing the power and influence of decentralized autonomous organizations (DAOs) in the crypto world.
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The Nouns DAO “rage quit”
NounsDAO finds itself on a countdown, with just a week left before a potential treasury split. This move has been triggered by a significant number of NFT holders, who, instead of selling their NFTs in the currently bearish market, are opting for a more lucrative exit.
These holders, representing 25% of all Nouns NFTs, are keen on extracting a better price directly from the project’s ether token reserves.
The mechanics of the movement
The recent changes in the DAO’s rules have paved the way for this potential split. As per the newly established ‘rage quit’ guidelines, if 20% of NFT holders advocate for a “fork”, they can separate from the primary group.
The fork would allow investors to claim their portion of the project’s impressive 30,620 ether tokens, equivalent to a whopping $50 million. With each NFT valued at approximately 36.5 ETH ($59,600), the impending fork could see a treasury worth 7,598 ETH, or around $12.4 million.
Interestingly, the price of Nouns has surged to levels not seen since the previous December, leveraged by the arbitrage opportunity. Among these traders are notable figures in the cryptomarket’s “risk-free value” trading niche, including the enigmatic DCFGod, a proud owner of 28 of these pieces.
The bigger picture: DAOs and “rage quits”
The crypto world has witnessed a series of “rage quits”, highlighting the unique challenges and dynamics of decentralized autonomous organizations (DAOs). These organizations often grapple with investor factions who, disillusioned with the project’s direction, demand their investments back.
Projects whose assets are undervalued compared to their book value become prime targets for activist traders. These traders are on the constant lookout for opportunities to unlock and capitalize on this latent value.
Nouns DAO’s approach
Recognizing the potential challenges and the evolving needs of its investors, the DAO took a proactive step last month. The DAO greenlit a comprehensive upgrade termed v3. This upgrade introduced the forking mechanism, providing a structured and peaceful avenue for discontented investors to execute a ‘rage quit’.
The impending treasury split is more than just a financial maneuver. It’s a testament to the power of decentralized decision-making, the influence of activist traders, and the need for adaptability in the dynamic world of cryptocurrency. As the clock ticks down to the potential split, the crypto community watches with bated breath, eager to witness the next chapter in the NounsDAO saga.