Nouns DAO
Nouns is a decentralized autonomous organization (DAO) formed around a generative membership NFT collection.
Website: https://nouns.wtf/
HQ: Grand Cayman, Midland, Cayman Islands
Active Markets: Global
Problem Addressed
Allocating funds towards initiatives that align with a community’s desire presents a coordination challenge that has historically been solved by representative authority. The resulting centralization effect in organizations carrying out the desired actions of the communities they represent, leads to outcomes where the actions of representatives may not align with the majority of the community.
Project Description
Nouns – using the improved coordination capabilities of blockchain decentralized autonomous organizations — seeks to improve Web3 avatar communities by focusing on governance and a shared community treasury to increase the capabilities of community funding initiatives. Community members gain entry by purchasing a Noun NFT, of which only one is minted each day. All revenue from NFT sales goes directly to the DAO treasury where its use is voted on collectively by the community for allocation in support of various community-based projects and initiatives.
Nouns DAO members who hold Nouns NFTs create and vote on proposals which guide the direction of the organization and allocate the funds of in the treasury. Funded initiatives include charitable donations to organizations like Coral Restoration Foundation, Freedom of the Press Foundation, and the Rainforest Foundation; a Nouns animated feature project; blockchain infrastructure projects; and a Nouns-themed float for the Rose Parade.
Business Data
Status: Active
Constituency Served: Creators/artists, builders, general public, non-profits
Networks: Ethereum
Known Investors: Self-collected and owned
Additional References: N/a
Progress to date
The DAO announced its first animated feature project after the funding and release of the animated short, Welcome to Nountown. Nouns: A movie, is actively producing new episodes after being voted for through the Nouns DAO Governance proposal for the film. Nouns DAO and American actor and filmmaker Seth Green produced a Nouns themed float for the 2023 Rose Parade.
In 2023, 472 Nouns NFT holders voted to fork the organization, creating a new DAO taking with them almost $50 million in treasury funds. Over 60% of the new DAO members then redeemed their tokens at nearly $50,000 each. Token holders who voted to exit cited a lack of direction in the project and out-of-hand funding initiatives. The original Nouns DAO remains operational. Some — including Maria Shen of Electric Capital — have pointed out that forking allows more committed members to remain with the organization while less passionate participants are not “held hostage.”
Business Model
Nouns DAO generates funds through NFT sales — 100% of which are directed to the community treasury.
Traction
As of April 2024, the Nouns DAO treasury held 3,455 ETH, or over $12,273,000.