Mom and Dad (The Nouns Dao) Are Breaking Up!
TL;DR
This week, NounsDAO members decided to have a little talk about their relationship and, well...they broke up.
Typically, if a fork happens - a new coin/token is created and gifted to the holders of the original project, to try and lure them into the new ecosystem (e.g. 'Bitcoin SV' was a fork of Bitcoin). But in the case of NounsDAO, holders had to choose which fund their tokens would be go to, instead of maintaining a balance in both.
The world went from having one Nouns DAO to two…but if one wins, it doesn’t mean the other loses. In fact, it means they both win!
Full Story
This week, NounsDAO members decided to have a little talk about their relationship and, well...they broke up.
(When we say ‘NounsDAO,’ think ‘crypto fund managed by Nouns NFT holders’).
Here’s what you need to know:
472 of 845 (56%) of all Nouns holders have officially quit the original DAO to join the new one (we wrote about it the other week).
The new DAO received >14,000 ETH (~$21M). Not bad!
Those who left now get a "forked" copy of their NFT + around 35.5 ETH (~$58k).
This is a pretty big deal.
Why?
It’s the first real ‘fork’ (think: 'split' or 'copy') where sides had to be chosen.
Typically, if a fork happens - a new coin/token is created and gifted to the holders of the original project, to try and lure them into the new ecosystem (e.g. 'Bitcoin SV' was a fork of Bitcoin).
But in the case of NounsDAO, holders had to choose which fund their tokens would be go to, instead of maintaining a balance in both.
It’s a big choice and a social experiment with very real financial consequences.
The really interesting part is this:
The world went from having one Nouns DAO to two…but if one wins, it doesn’t mean the other loses. In fact, it means they both win!
See, the image and likeness of the Nouns NFTs are free for anyone to use commercially - even if they don’t own the NFT.
The idea being that if anyone can use it, more will - and if the Nouns brand becomes globally recognizable, the NFTs will go up in value.
So if one of these DAOs manages to boost the value of the Nouns brand, and the NFTs along with it - all NFT holders benefit (even those in the competing DAO).
Unlike Liz Warren's crypto bill, this is a win/win baaaby!