NounsDAO on the Brink of Treasury Division Split Amidst 'Rage Quit' Uprising by NFT Holders
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NounsDAO is on the verge of a treasury division scheduled to occur in just one week, following a significant number of owners of the delightful and vibrant digital collectibles opting to execute the latest "rage quit."
Holders owning 25% of all Nouns NFTs are showing their disregard for the project. Instead of attempting to sell their NFTs in the currently bearish open market, they are swiftly seeking better prices by directly tapping into the project's reserve of Ether tokens.
In accordance with the recently implemented rage quit regulations of the crypto club, in the event that 20% of Nouns NFT holders decide to initiate a "fork," they have the option to separate from the primary collective and claim their portion of the project's 30,620 ether tokens, valued at approximately $50 million at the time of this statement. Each individual Nouns NFT holds an estimated value of 36.5 ETH ($59,600), thus equating the current fork's treasury to 7,598 ETH, equivalent to approximately $12.4 million.
Nouns are currently reaching a similar price point, marking the first occurrence since last December. This increase in value is driven by traders seeking effortless profits through arbitrage opportunities. Among these traders, there are notable individuals within the cryptocurrency market's "risk free value" trading subculture, including the pseudonymous figure DCFGod, who holds a portfolio of 28 Nouns.
The current scenario represents the most recent occurrence in a string of "rage quits," highlighting how decentralized autonomous organizations (DAOs) handle groups of investors who lose confidence in their mission and request the return of their investments. Projects with assets trading below their intrinsic value are especially attractive to activist traders seeking to unleash the untapped potential of these assets.
In the context of NounsDAO, the method to unlock this value is relatively recent. Just last month, the DAO endorsed a comprehensive upgrade referred to as v3, which introduced forking as an option for dissatisfied investors seeking a peaceful exit.
“Every DAO needs a minority protection mechanism.” DAO contributor Elad said in a recent YouTube video describing the process.
