Nouns DAO fork loses half its treasury in 3 days
More than half of Nouns DAO defected to a “forked” version of the project in a novel attempt to duplicate the concept with fresh leadership....
- More than half of Nouns DAO defected to a "forked" version of the project in an attempt to duplicate the concept with fresh leadership.
- The split resulted in a massive outflow of assets from the DAO treasury, followed by a sell-off.
- Instead of being used to rebuild Nouns, most of the forked assets have left the project altogether.
- Nouns DAO mints and sells one pixelated Noun NFT every day, with the income flowing into the DAO's treasury.
- In May, Nouns introduced a means for DAO members to "fork" Nouns, allowing a 20% quorum of users to create a new version of the project.
- The first Nouns fork was carried out by a fiscally conservative group upset with the DAO's spending from its treasury.
- By the time the fork executed, more than half of all Nouns left the original DAO, resulting in an outflow of over $27 million.
- The forked Nouns' treasury fell significantly as Nouns holders "ragequit," taking a substantial amount of ether with them.
The sentiment of the article is negative, as it highlights the failure of the DAO split mechanism and the subsequent sell-off of assets.