Nouns is an NFT project that sells a new one every day for about $150,000. It just turned 1-year old today.
Why it matters: Nouns have never generated a lot of headlines, but the project has shown persistent interest from NFT collectors and seems to be a new model for building out an ecosystem around intellectual property.
How it works: Nouns are NFTs in the 8-bit style of old video games. They are made up of different components such as heads, colors of glasses and different shirt designs.
For five years, every tenth Noun goes into a pool that belongs to the people who created Nouns. That's how the DAO pays them for making it and continuing to contribute to it (the Nounders could not be reached for comment by Axios).
What about the money? It's used to fund projects that expand the mind share of Nouns, though they are in no rush about it. So far they have funded things like:
💭 Our thought bubble: If some piece of content catches the public imagination and a Noun character becomes popular, like Nyan Cat or Hello, Kitty, it's going to make the whole set of Nouns much more valuable.
The DAO also been buying back Nouns so the DAO itself can own some. It also funded building a way for people to bid on Nouns as a group.
Play around with making Nouns yourself here.
The bottom line: Every Noun has one vote in decisions that the DAO makes. So every day each holder gets a little less powerful, but the DAO also gets one more advocate with a vested interest.
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