Nouns Fork: Disgruntled NFT Holders Exit With $27 Million From Treasury
The community of NFT holders in prominent Ethereum collection Nouns fractured into two late Friday when a proposed fork from the project was completed. Holders of more than half of all Nouns NFTs opted to leave—and collectively withdrew over $27 million worth of ETH from the project treasury in the process. The owners of 472 total Nouns NFTs—out of 846 in total, or almost 56% of the collection—joined the fork, and took almost 16,757 ETH ($27.3 million worth at present) with them from the current Nouns DAO treasury into a new DAO organization. A DAO, or decentralized autonomous organization, is an online group with tokenized membership and shared goals. Ultimately, the amount of Ethereum leaving the treasury divides down to approximately 35.5 ETH per NFT, or about $57,850. As a result of the fork, the owners’ original NFTs will be returned to the DAO treasury and each holder will be issued a replacement NFT with identical artwork for the new DAO. The new DAO will let holders “ragequit” and take their share of the treasury—that 35.5 ETH per NFT—and forfeit their profile picture (PFP) for good. The move signals a lack of confidence from many who bought into the current Nouns DAO format, which has seen millions of dollars worth of ETH spent since the project’s debut in 2021 to fund an array of Nouns-themed projects.
NFTs | DeFi | News
