Summary, History and Status of Nouns

Summary, History and Status of Nouns

Summary, History and Status of Nouns

...and what to do with it?

NFTs

·

19 min

Summary, History and Status of Nouns

...and what to do with it?

NFTs

·

19 min

Summary, History and Status of Nouns

...and what to do with it?

NFTs

·

19 min

Summary, History and Status of Nouns

...and what to do with it?

NFTs

·

19 min

TL;DR: With a new update or NFT collection being released almost every day, it’s clear the crypto ecosystem is constantly evolving. Nouns is one of the NFT collections paving the road to the digital universe — but it’s just the beginning. Knowing what brought it here and why it was created will lead you to make better decisions when investing or simply interacting with Nouns.

In this article, we’re gonna dive into the Nouns lore, answer all the Nouns related questions and even more. Prepare yourself for a fantasy story and a journey to the future of Nouns!

What is Nouns?

Nouns is an NFT collection of infinite pixelated characters that live on the Ethereum blockchain.

You heard that right, there is no cap on the number of Nouns NFTs that are being minted.

The Nouns project features a perpetual auction where one Noun is auctioned every 24 hours. Participants can engage in these auctions through the nouns.wtf website, a platform developed and managed by the project's founders aka Nounders.

Due to the operational mechanics of the Ethereum blockchain, Noun auctions require a settlement process after their conclusion. The auction settlement transaction serves three primary functions:

1. It transfers the existing NOUN ERC-721 token to the winning bidder of the auction.

2. It generates the subsequent Noun in the series.

3. It initiates the commencement of the next 24-hour Noun auction in the ongoing cycle.

The project auctions one Noun NFT every 24 hours and serves as an experiment to see how the on-chain communities can govern their community. To achieve this goal, the Nouns DAO retains the profits from the NFT auctions which are then allocated for community proposals.

Owning an NFT is different than screenshotting a JPEG - just like holding an original Rembrandt is more valuable than owning a replica. As their name suggests, NFTs are non-fungible by design. This is different from digital tokens like Bitcoin and Ethereum.

Fungible assets can be exchanged for another asset of the same type, much like BTC, ETH, or even fiat. NFTs, on the other hand, are unique assets where their ownership details are documented on the blockchain, ensuring digital scarcity and unique attributes for each asset.

But how exactly is digital scarcity being enforced?

The concept of NFTs first emerged in 2012 with the creation of Colored Coins, which could be used to represent real-world assets on the blockchain. However, Colored Coins only worked in a permitted environment, making it more similar to a database than anything else.

As the crypto industry became more popular, people have continued to experiment with the idea of a digitally scarce asset. This led to the creation of ERC-721 and ERC-1155.

The ERC-721 standard is like a set of rules for making NFTs. These actions help in making special tokens with their unique information, making them different from one another.

Behind the scenes, ERC-721 smart contracts keep a list of who owns which token, making it safe to pass tokens from one person to another. The contract also keeps count of how many tokens there are altogether and how many each person has.

As previously mentioned, Nouns NFTs are secured by the Ethereum blockchain. Ownership and transaction history are publicly visible on the Ethereum blockchain along with other important info such as the NFT's metadata.

Understanding how to access an NFT's metadata is essential for holders to grasp the specifics of what they're buying.

Metadata usually includes visual attributes like color, type, wearables, and so on. On the blockchain, it looks something like this:

Before the Nouns came into the picture, many PFP communities were all about chasing those rare traits. It was like a treasure hunt, but it sometimes created a pecking order within the groups. But the Nouns are different. They wanted to build a community where everyone felt equal.

Of course, that doesn't mean there aren't some rare Nouns out there. You see, the Nouns are created randomly, and this randomness can lead to unique and rare combinations. Imagine it like this: if there are around 230 different heads, you'd expect to see each one roughly once a year. But the randomness can sometimes surprise us. For instance, we recently had three 'Void' heads show up one after the other, which is quite unusual.

So, in Nouns, every Noun is special, but sometimes, randomness likes to throw in a surprise or two. It keeps things exciting and reminds us that uniqueness is everywhere.

The Nouns NFT collection has been autogenerated. This means that every day, a new Nouns NFT will be auctioned in perpetuity!

What is the utility of Nouns?

Nouns make for an awesome avatar pic, but it’s also a ticket to the governance board of Nouns DAO. Once you’ve paid your entrance by holding a NounsDAO you are part of the family. This comes with one major advantage – the ability to vote on proposals and make cool things happen.

Holding a single Nouns NFT gives you one vote. But holding 2 Nouns or more also gives you the ability to initiate a proposal. Because the NounsDAO treasury is funded from Nouns sales, money is not an issue.

Proposals can be something that helps the brand (an NFT marketplace, design creation, meetups etc.) or a charity that shows how good the Web3 community is.

At the end of the day, NounsDAO is a great on-chain governance experiment that promises to give back to the community. If you are an artist or possess technical skills, owning a couple of Nouns NFT can fund your creative skills – just make sure to write a clear and concise proposal. And if you are short of one Nouns NFT, make friends in the Discord and collaborate to create dope stuff. The sky is the limit 🚀

As the Nouns brand expands, NFT holders will be able to vote on new proposals that may benefit the entire cohort of holders. Whether you are hodling for a season or longer, the Nouns ecosystem continues to explore new ways of keeping holders engaged.

Who created Nouns?

Nouns was created by 10 anonymous NFT artists on August 8, 2021.

The anonymous NFT artist @Punk4156 was responsible for bringing the concept and art of Nouns to life.

Punk4156 had spent a significant amount of time in the CryptoPunks community, pondering the concept of CryptoPunks 2.0. He was determined to identify the missing primitives that could make the project more crypto-native and push its boundaries beyond price speculation.

One day, inspiration struck, and he decided to document his vision. Punk4156 expressed his ideas in a Twitter thread, essentially creating what could be considered the white paper for Nouns. This original thread is still accessible on their Twitter account, outlining the fundamental properties and high-level concepts that underpin Nouns DAO today. Towards the end of the thread, Punk4156 posed a question to the Twitterverse, asking if anyone was interested in collaborating on this ambitious project. Vapeape and Seneca were among those who enthusiastically responded in the affirmative.

There were essentially three key factors that inspired the creation of Nouns DAO. The first was the absence of a robust organizational infrastructure within the CryptoPunks project. This deficiency hindered the ability of CryptoPunks to effectively coordinate their on-chain activities and collaborate on various endeavours.

Secondly, the team questioned the fairness of the distribution mechanism used by CryptoPunks. They sought a more equitable approach that would encourage community building over an extended period rather than relying on who happened to be online at a specific moment in history, such as the Thursday in 2017 when CryptoPunks were initially released and claimed.

The third crucial idea, strongly championed by one of the key figures behind Nouns DAO, was the notion that the digital image (JPG) represented by the token should mirror the token itself in terms of being permissionless and open. This led to the decision to place all intellectual property into the public domain and designate it as CC0, ensuring that people could freely utilize and build upon it without concerns about potential intellectual property issues.

The early days of Nouns DAO were marked by creative experimentation. The team embarked on the journey by creating pixel art, a decision that would later prove pivotal in terms of storing the Nouns on-chain. Pixel art allowed for efficient compression to ensure the Nouns could fit within the constraints of on-chain storage.

The character design process began with various iterations of characters, particularly experimenting with different types of heads. The project's inception can be traced back to Gremplin drawing a character with duck-like features, characterized by distinct and contrasty eyes that would become a defining feature of Nouns. Following this, another member of the team took this image and playfully added a pair of glasses around the character's eyes. This simple act of creativity was shared in the project's Discord channel with the comment that it looked cute with the eyes and glasses. This quickly led to unanimous agreement within the team that having every character wear those iconic glasses would be a central and memorable aspect of the project.

The creation of Nouns marked a unique and dynamic period in the NFT space, where a talented team of 10 builders congregated in a Discord channel, embarking on an intensive journey of creativity and innovation. Remarkably, many of the pivotal decisions and developments during this phase occurred with remarkable speed.

Within approximately 24 hours, the team managed to establish the distinctive Nounish aesthetic, defining the visual style and characteristics that would become synonymous with Nouns. This rapid clarity in their vision allowed them to take to Twitter and actively engage with the community. They began soliciting ideas from the public, asking what kind of Noun heads people would like to see in the project. Subsequently, they would promptly illustrate these heads, laying the foundation for the diverse array of Noun characters.

Unlike the club of PFP NFTs, like the CryptoPunks or the Bored Ape Yacht Club, where exclusivity reigns supreme, Nouns NFTs have a quirky twist in their creation. Every 24 hours, a random Noun pops into existence and struts its stuff on the auction stage. After the curtain falls on one Noun's auction, a brand-new one is conjured up, complete with its distinctive traits.

Nouns are sold in a 24-hour bidding set up. For example, the first Noun was minted on August 8, 2021, and the highest bidder paid 613 ETH. Noun #2 was auctioned in the next 24 hours, and so on – every single day a new Noun is up for auction.

This clever minting system coupled with the idea of an on-chain governance experiment catapulted Nouns to fame, at least in the NFT circles. More on the governance aspect in the next section.

Who is developing Nouns now?

Nouns are being maintained by the NounsDAO, which is effectively made out of Nouns NFT holders.

In a nutshell, the Nouns DAO serves as the gathering place for Noun owners, where any member wielding at least 2 Nouns can pitch a proposal up for a vote. The primary aim? To propel the Nouns project forward, maintaining its vibrant presence, and luring in high-value members and investors. It's worth noting that there's no set limit on the number of Nouns an individual or entity can possess, but a minimum of two Nouns is a must to initiate proposals. Plus, those early birds known as the founding members can look forward to rewards in the form of Nouns – specifically, 10% of the supply, or every tenth Noun, over the course of the first five years.

On January 1, 2022, the @nounsdao Twitter account excitedly shared the big news with the world – the birth of the Nouns Foundation! This new entity represents a significant step into the decentralized and autonomous realm of Web 3.0, all rooted in the quirky and captivating Nouns NFT project.

Here's how the Nouns Foundation operates: 100% of the ETH proceeds from daily Noun auctions flow directly into the Nouns DAO treasury. Each Noun holds a position as a lifelong member of the Nouns DAO and wields the power of a single vote when it comes to all things governance. These votes are a unique breed – they cannot be traded to others but can be handed over, delegating your voting responsibilities to someone else, as long as you remain the proud owner of your Noun.

Within this framework, the Nouns DAO takes center stage in managing the Nouns Foundation's day-to-day activities. It draws resources from its treasury to fund exciting roadmap projects, ensuring that the Nouns universe keeps evolving in fascinating ways.

The Nouns DAO doesn't stop at governance alone; it also oversees independent projects within its platform. Presently, the Nouns Projects portal plays host to a bustling community of over 150 creative endeavours. These projects play a significant role in enhancing the practical value and real-world applications of the Nouns NFT collection. A prime example includes merchandise initiatives that rake in substantial profits by offering Noun-branded products.

In a rather unexpected twist, on September 2023, over half of the members of Nouns DAO decided to break away to create a "forked" version of the project in an effort to breathe new life into it with a different leadership approach. However, this initiative, instead of fueling an interest in governance, triggered a wave of selling.

Nouns DAO, a project driven by a decentralized autonomous organization (DAO) focused on NFTs, had introduced the concept of DAO forking, serving as an escape route for dissatisfied members. As a result, Nouns DAO Fork #0 came into effect last Friday. Unfortunately, rather than contributing to a reconstruction of Nouns with a fresh spending strategy, most of the forked assets chose to leave the project altogether.

Nouns DAO generates and sells a pixelated Noun NFT every day, and the proceeds are channeled into the DAO's treasury. These funds are often allocated to peculiar initiatives aimed at raising the profile of Nouns, such as proposals to install a massive 32-foot donut in Los Angeles or sell a Noun for a specific amount of ether.

In May 2023, Nouns introduced a mechanism that allows DAO members to "fork" Nouns. A 20% quorum of users can create a new version of the same project, transferring their NFTs to the new DAO and having the option to "ragequit" by cashing out the proportional value of their Nouns.

Although a Nouns fork doesn't establish a new blockchain, the concept behind this DAO split is similar to a conventional fork in a blockchain, allowing disgruntled users to venture on their own with the social capital and code of the original project. This "DAO forking" theoretically offers more protection to minority token holders in a space often influenced by a select few with significant holdings.

The initial Nouns fork was orchestrated by a group of Noun holders who were concerned about the DAO's spending practices. Approximately half of the original Nouns DAO membership, totaling over $27 million, departed during this split.

Some have interpreted this mass exodus as a vote of no confidence in the project's founders. However, some participants in the forked Nouns insist that it represents the authentic Nouns DAO. The treasury of the forked Nouns, nevertheless, declined significantly as Noun holders opted to "ragequit," each leaving with a substantial sum. The Nouns price bottomed around 35 ether in recent days but dropped below 30 ether in mid-August, allowing shrewd investors to capitalize on the difference.

The outcome of this fork remains uncertain and will ultimately be determined by social consensus. While some believe that the original Nouns DAO, which retained the project's founders and sub-DAOs, will prevail, many still find value in the concept behind the Nouns fork. It highlights the resilience of the DAO forking mechanism, indicating that its efficacy shouldn't be dismissed based on a single occurrence.

Investors are also an important component of every NFT ecosystem. Although they don’t get involved directly in the governance of the project, they do exert an influence over the brand’s expansion into the mainstream. As of 2023, Nouns is 100% reliant on its own treasury, counting 10,160 ETH.

How does Nouns make money?

Now, let’s get to the juicy part – how does Nouns make money?💰 (No, flipping and rug pulling are not the correct answers)

The answer to this question is strongly related to intellectual property.

Think of popular trademarks such as Mickey Mouse, Spider-Man, or Coca-Cola. Every time you see movies, books merch, or posters with them, know that the owners of the IP get a share of the profits. The same thing goes with the NFT holders, in theory.

When it comes to NFTs, it’s quite challenging to fit them into the traditional framework of copyright law. To give more context, owning an NFT doesn’t mean holders have automatic control over the creative work. This creative control needs to be granted by the creator.

As such, NFT holders should pay attention to what IP rights, if any, come with owning the NFT. Nouns is regraded as a pioneer of open-source intellectual property. This means Nouns holders have full commercial rights to the art in their owned wallets. There are no monetary limits on earnings on merchandise, derivatives or other commercial uses.

Another way of generating revenue is via royalties. However, Nouns made no intention of enforcing royalty fees from transacting NFTs.

The only source of revenue for NounsDAO comes from the NFTs that are being auctioned every day. After the NFT is sold, the ETH goes straight into the NounsDAO treasury where holders get to decide what to do with the money.

The mission of Nouns is to experiment with on-chain governance. Users are encouraged to forward proposals to the community, and the best ones receive funding. “Best ones” is an understatement – imagine a bunch of internet anons with a multi-million dollar treasury. What can go wrong?

The first DAO proposal was to fund 5 ETH to 6 charities. The vote passed with 7 “for” the initiative.

The second vote was to fund 32 ETH for the creation of 3D customizable Nouns. Everyone was ok with it.

As proposals went on, the community started to get more outrageous. For example, Proposal 16 was about spending $90K on renaming a frog species that has just been discovered. The proposal reads:

“I’d like to propose that NounsDAO pay 25 ETH to purchase the right to name the frog Hyalinobatrachium Nouns, or Nouns Glassfrog in plain English. As far as I know, naming a species would be a first for the crypto and NFT community. Frogs have memetic value in the NFT community, making this species an appropriate choice for naming. Not only would this story be likely to get picked up by the press and social media, but the money goes to the cause of protecting biodiversity and rainforests.”

Guess what? The proposal passed with 27 votes “for” and 8 “against!”

In between memes and fun, NounsDAO also voted on some important proposals which aimed to strengthen the brand’s appeal to the masses.

In June 2023, Nouns DAO, in collaboration with Atrium, unveiled the first installment of "The Rise of Blus: A Nouns Movie," a groundbreaking animated film that secured funding from a DAO, marking a significant milestone in the world of cinema.

The storyline of "The Rise of Blus" revolves around the vibrant floating cloud city of Blus, where a fearless 13-year-old Noun stumbles upon a sinister plot orchestrated by the city's aristocrats. In a quest to counter this menace and safeguard their loved ones, the young protagonist must forge unlikely alliances with a diverse group of allies, all of whom are fellow Nouns.

Danit Peleg, a renowned designer recognized for her groundbreaking work in 3D-printed fashion, gained widespread acclaim in 2015 when she introduced the world's first ready-to-wear collection created through 3D printing technology. In a more recent collaboration, this innovative designer from Tel Aviv joined forces with Nouns to produce a remarkable collection of five 3D-printed outfits. The Nouns DAO provided full funding for this unique venture.

The debut of this extraordinary collection occurred in March 2023 during the NFT Paris event. The collection, consisting of outfits named Queencrown, Loading, Snowglobe, Crt BSOD, and Cash Register, serves as a creative fusion of NFT-inspired aesthetics and cutting-edge 3D printing technology, marking yet another exciting milestone in the intersection of fashion and digital art.

The Nouns × Fitz Frames Prescription Subscription program is a heartwarming initiative designed to assist kids in need of glasses. Whether they lose their glasses, accidentally break them, outgrow their frames, or simply want to switch up their style, this program has them covered. By collaborating with some wonderful partners, the Nouns team ensures that children always have access to the eyewear they require. To date, with the support of the Nouns DAO, they've been able to provide over 3,000 pairs of prescription glasses to kids in need. Even more impressively, they introduced a specialized examination van in December 2022, making it even easier for children to receive the essential eye care they deserve.

Back in January 2022, Bud Light made a significant move by acquiring Noun #179 for a whopping 127 ETH. This acquisition paved the way for an exciting partnership with Nouns. Once their proposal received the green light, Bud Light incorporated the distinctive glasses from the Nouns ecosystem, affectionately known as "Noggles," into a Super Bowl LVI commercial. This marked a pivotal moment, highlighting the growing mainstream recognition of NFTs and the Nouns ecosystem. Major corporations like Bud Light are beginning to appreciate the unique value of these digital assets.

As a sign of their commitment to the Nouns community, Bud Light even temporarily changed their Twitter avatar to showcase Noun glasses. The proposal outlined that Bud Light aims to empower holders of their own NFTs to participate in collective voting on future governance proposals using their Nouns. Looking ahead, there's a possibility that Bud Light might produce a limited run of cans featuring custom Noun-themed packaging for Noun holders.

Each day, as new Nouns spring into existence, the DAO actively seeks out partnerships with brands and creators to finance innovative projects. With a flourishing community of members dedicated to proposing and greenlighting these endeavours, the influence of the Nouns ecosystem is set to grow even further.

Where can I buy Nouns?

You can buy Nouns on OpenSea.

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