Nouns Purchase Proposal

The proposal is put forward that we acquire a Nouns NFT in the 70-80 ETH range.

Nouns are one of the most unusual and unique projects. https://nouns.wtf/

Firstly it has a prolific bunch of founders (including Gremplin of Cryptotoadz and Chimpers founder), artists and council members (It is a DAO after all).

Secondly instead of minting 10K in one go they mint one each day forever and do so via a public auction. We have it on good authority from SharkDAO (one of the bigger holders) and Giancarlo that the DAO can vote at any time to stop supply meaning they might end up with vastly less than 10K. As it is it would take over 27 years for them to mint 10k! Each Noun acts like a Fat Cat in that it is a pro-rata vote and share of the DAO and so if the DAO were to liquidate tomorrow the pay out would be 74 ETH per noun (The treasury currently holds 26097 ETH). As a side note Giancarlo considers Nouns to be one of the top three NFT pfp collections (the other two being Cryptopunks & BAYC.)

Thirdly, their compensation structure is fascinating! The team get paid with every 10th Noun which gets sent to their group wallet thus incentivizing them to continue to build the brand along with the holders & council. The council at this time are not compensated.

Next is the fact that NounDAO is the OG of CC0 and their glasses are so iconic that they show up regularly in other collections. Because of their CC0 status a number of derivatives have already been created which has both strengthened the core brand (and regularly caused their floor to be propped up - we know this well in the NFT space that derivatives tend to drastically help the OG collection) and got them compensation in some cases (Little Nouns is a derivative project with a floor of 0.45 eth that mints a noun every 15 minutes and the 11 one goes to Nouns vault every time). There are not many quality CC0s yet and of the CC0s only Noun really seems to be constantly building and doing (well other than Fat Cats of course).

Lastly Nouns has been active for nearly a year and does not seem to be slowing down. You can see all of their recent votes here https://nouns.wtf/vote. It should be noted that most of their votes that require funds have been focused around branding and charity vs asset acquisition like in the case of Fat Cats. This both shows their interest is heavily on building out their ecosystem and brand but also might make the project less appealing to some in Fat Cats who are heavily income or compounded growth focused. That said, having looked into the matter a bit it seems the holders and council are just being patient and avoiding making gimmick investments until we see more actual NFT utility. While they wait their focus on brand building and exposing the world to NFT art has been admirable and their floor price reflects it as does the very serious amount of hodler whales. If this proposal passes I also propose that we make an effort to get involved in their Discord and push to get on their board so that we can take an active role in their direction.

Please note as we are still working to get a UI for our website sorted so that you can all easily see the state of our holdings our current core holdings are. Should we proceed with this purchase we will safely have operational funds for six months and liquidity to aggressively pursue quality incubator projects, high quality flips and arbitrage positions, however we will not be able to pursue much else until our capital then increases again.

Approximately 94-96 ETH (with the most recent royalties) so assuming we do purchase a Noun for 80 ETH the remainder would be 14-16 ETH. 6 months funds held in USDC to pay for the council, basic expenses and get our Shopify store running. 5.5 WETH in our loan liquidity pool.

1 x BAYC 1 x MAYC 1 x Cryptopunks 1 x Otherdeed 6 x Bubbleworlds 1 x TCG world gold (gifted) 1 x Plug pass (gifted) 1 x Freshdrops (gifted) 3 x Engima Economy (gifted) 1 x Recon Rams (gifted) 1 x Metatriads (gifted) 1 x Salty Pirates (gifted)