TL; DR
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This week, NounsDAO members decided to have a little talk about their relationship and, well… they broke up.
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Typically, when a fork occurs, a new coin/token is created and gifted to the holders of the original project, to try to attract them to 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 go to, rather than maintaining a balance in both.
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The world went from one noun 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:
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472 out of 845 (56%) of all noun holders have officially left the original DAO to join the new one (we wrote about it last week).
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The new DAO received >14,000 ETH (~$21 million). Not bad!
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Those who left now will get a “forked” copy of their NFT+ at around 35.5 ETH (~$58k).
This is a pretty big deal.
Why?
It is the first real ‘fork’ (think: ‘split’ or ‘copy’) where sides had to be chosen.
Typically, when a fork occurs, a new coin/token is created and gifted to the holders of the original project, to try to attract them to 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 go to, rather than 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 one noun 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 noun NFTs are free for anyone to use commercially – even if they don’t own the NFT.
The idea is that if everyone can use it, more will – and as the Nouns brand becomes globally recognizable, NFTs will increase in value.
So if any of these DAOs succeed in increasing the value of the Nouns brand, and thus the NFTs, all NFT holders (even those of the competing DAO) benefit.
Unlike Liz Warren’s crypto law, this is a win/win baaaby!