Hundreds of Nouns Holders Rally to Exit DAO, Leading to Treasury Split

In a significant development, hundreds of individuals participating in the Decentralized Autonomous Organization (DAO) have come together to rally for an exit amidst concerns. This mass movement has resulted in a split in the organization’s treasury, creating a unique situation. Read on to learn more about this fascinating turn of events and its potential implications.

The Uprising Within NounsDAO: Refund Calls and Treasury Split

In the fast-paced world of NounsDAO, an unprecedented phenomenon is taking place. Numerous NounsDAO holders are voicing their demand for a refund, which has ignited the possibility of a division within the project’s treasury. With a significant number of holders in favor of exiting, it appears that a split in the treasury is inevitable.

The NounsDAO treasury serves as a resource allocation hub for the long-term growth and prosperity of the Nouns project. This treasury has been responsible for funding a remarkable 158 projects and proposals to date; however, its future is hanging in the balance as the treasury continues to dwindle.

To execute the desired fork, commonly known as a “rage quit,” NounsDAO requires 20% of the Nouns non-fungible tokens (NFTs) to unite in their demand. This collective authority would enable them to break away from the main group and rightfully claim their share in the project. Once the fork concludes, each Nouns holder can expect to receive approximately 35 ETH, reflecting the current market value of Nouns in auctions.

As of now, there are 334 Nouns actively participating in the fork, with a remaining duration of four days. With a current fork treasury value of around 11,858 ETH, the percentage of Nouns favoring an exit amounts to nearly 40%, emphasizing the significant divide within the organization.

The Financial Implications and Wider Significance

The financial implications of this situation are staggering, as the fork treasury currently commands a worth of approximately 11,858 ETH. This value represents a substantial amount that might be lost if the fork proceeds.

Notably, NounsDAO’s turmoil has sparked concerns within the broader crypto community. As one of the most successful and well-known decentralized autonomous organizations (DAOs), NounsDAO’s challenges raise doubts about the future of other similar entities.

The Potential for Short-Term Market Impact

Despite the uncertainties surrounding NounsDAO’s situation, some speculate that this exit could have a positive impact on the NFT market in the short term. According to user NiftyNoonNFT, the exit could serve as a small liquidity event that boosts the market. As thousands of ETH are returned to the hands of NFT enthusiasts, it could create opportunities for NFT-native individuals.

A Decentralized Governance Experiment in Motion

The current state of NounsDAO can be traced back to the approval of the v3 upgrade, a significant decision that granted disgruntled investors the option of peaceful exit through forking. This mechanism was implemented to safeguard the interests of all stakeholders. As NounsDAO’s journey continues to unfold, the crypto community closely observes this experiment in decentralized governance, eagerly awaiting the latest developments.

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