Nouns are an experimental attempt to improve the formation of on-chain avatar communities. Nouns DAO utilizes a fork of Compound Governance and is the main governing body of the Nouns ecosystem. Nouns DAO lets Nouns NFT holders participate in governance. Each Nouns NFT equals one vote. Holders can vote directly or delegate their votes. Proposals require ownership of at least two Nouns NFTs. New Nouns are minted daily, diluting individual voting power and encouraging active participation. The tokenomics of Nouns DAO are centered around a auction mechanism and a decentralized governance model. Every day, one Noun NFT is minted and auctioned off, with all proceeds going directly into the Nouns DAO treasury. The initial funding mechanism leverages the sale of these Noun NFTs to build a substantial treasury, which has grown significantly over time.
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