Nouns DAO: Alternative Fork Design

Can an alternative fork design in Nouns DAO reduce the speculative participation of arbitrageurs?

Client

Nouns DAO

Project period

2024

Related expertise

Blockchains and Cryptoassets,

Team

Nicolas Greber, Nicolas Eschenbaum, Seline Spillmann

Contact

Nicolas Greber

Project Description

Nouns DAO is a decentralized autonomous organization on the Ethereum blockchain. Nouns are NFTs, one of which is auctioned on the DAO every day. The proceeds of these auctions flow into the DAO's treasury and are used for various projects. Members of the DAO who own Nouns are entitled to vote and can decide which projects are supported by the DAO.

Since the introduction of a fork mechanism in the Nouns DAO in August 2023, there have been three forks that have led to a drastic reduction in the treasury. Although some of this money remained in the forked DAOs, a large portion went to arbitrageurs who received a portion of the treasury after the fork with a ragequit.

Cryptecon was commissioned by the DAO to design an alternative fork mechanism to reduce the involvement of arbitrageurs.

Click here to read the blog and here to read the technical analysis.

Methods

Modeling
Simulation

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