NounsDAO is on track to undergo a treasury split in a week after a significant number of the charming, colourful digital collectibles’ owners decided to engage in cryptocurrency’s most recent “rage quit.”
Holders who own 25% of all Nouns NFTs are dismissive of the project. They are scrambling to get a higher price directly from its hoard of ether tokens rather than trying to sell their NFTs on the open market, where NFTs are suffering from a bear market thrashing.
The Nouns NFTs can break from the main group and take their part of the project’s 30,620 ether tokens (worth roughly $50 million at press time) with them if 20% of Nouns NFTs ask for a “fork” in accordance with the crypto club’s recently enforced anger quit regulations. With each Nouns NFT having a book value of about 36.5 ETH ($59,600), the current fork has a treasury of 7,598 ETH (or roughly $12.4 million).
For the first time since December of last year, nouns are currently trading close to that level thanks to traders hoping to profit from the arbitrage. One of them, the pseudonymous DCFGod, who owns 28 Nouns, is a well-known personality in the “risk free value” trading subculture of the cryptomarket.
The incident is the most recent in a string of “rage quits” that highlight how decentralised autonomous organisations (DAOs) handle investor factions that demand their money back after losing faith in its mission. Activist traders who strive to unleash the value of assets are particularly drawn to projects whose assets are priced below their book value.
The method for releasing the value in NounsDAO is a recent development. The DAO authorised a significant upgrade known as v3 last month, enabling forking to provide irate investors a means to amicably rage out.
“A minority protection mechanism is necessary for every DAO.” Elad, a DAO contributor, explained the procedure in a recent YouTube video.