NounsDAO Barrels Toward Treasury Split After NFT Holders Rally for ‘Rage Quit’

NounsDAO, a prominent NFT project, is on the verge of a treasury split as a significant number of NFT owners have initiated a "rage quit" in the crypto community. These disgruntled NFT holders, who collectively own 25% of all Nouns NFTs, are opting to exit the project by seeking a more favorable price for their assets directly from the project's ether token reserves.

According to the newly implemented rage quit rules within the crypto club, if 20% of Nouns NFT holders call for a "fork," they can separate from the main group and claim their portion of the project's 30,620 ether tokens, valued at around $50 million at the time of writing. Each Nouns NFT has a book value of approximately 36.5 ETH ($59,600), resulting in a treasury of 7,598 ETH (approximately $12.4 million) for the current fork.

The value of Nouns NFTs has risen recently, driven by traders seeking to profit from arbitrage opportunities. Some well-known figures in the crypto market's "risk-free value" trading subculture, such as the pseudonymous DCFGod, who owns 28 Nouns, have been active participants in this price surge.

This situation is just one example of a series of "rage quits" within decentralized autonomous organizations (DAOs), highlighting how these organizations handle disenchanted investors who no longer support their vision and request a refund. DAOs with assets trading below their book value are particularly attractive to activist traders aiming to unlock the true value of those assets.

In the case of NounsDAO, the mechanism for unlocking this value is relatively new. Last month, the DAO approved a significant upgrade known as v3, which introduced forking as a means for dissatisfied investors to exit the project peacefully.

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