When you hear the word ‘Nouns’ you may think of grammar. But that’s not the type of Nouns we’re referring to in this guide. Nouns NFTs is a unique project supported by blockchain technology that began on August 8, 2021. Nouns NFTs are pixel avatars of a person, place, or thing. There are currently over 400 Nouns NFTs and that number increases every day.
To understand Nouns, we must understand DAOs. The Nouns project is a type of DAO (Decentralized Autonomous Organization) on the Ethereum network. Noun DAO NFTs are generative pieces of art. Generative art is created by a computer algorithm, so it’s unique, unpredictable, and random. As you may already know, NFTs are unique tokens that represent ownership of something (in this case digital art).
What Makes Noun DAOs Unique?
DAO is an acronym that stands for Decentralized Autonomous Organization. The original DAO was formed in 2016 by a group of crypto enthusiast developers with the goal of automating crypto sales and trades. They were the original DAO. But DAO now also refers to a decentralized governing body, meaning it is a system of governance that has no hierarchy, no leaders.
A DAO is governed by a native cryptocurrency token. This means anyone who has a token can vote on matters relevant to the DAO. With this in mind, Nouns DAO is the governing body for the Nouns protocol.
Nouns DAO NFTs embody the true spirit of blockchain technology. Not only is it a decentralized project, but it’s an open-source protocol (meaning anyone can contribute/benefit from it).
It is coded so that Ethereum block hashes create Nouns at random. The founders and developers involved with the Nouns DAO do not benefit from the financial rewards. Their main goal with the project is not monetary. The proceeds of every Nouns sale go to a community treasury. Because it is a DAO, this gives Nouns owners a vote in how the funds are used.
One unique Noun is minted and auctioned every day. Every time an auction is settled, the transaction triggers a new Noun to be minted thus beginning a new auction cycle. The plan is for that cycle to continue indefinitely.
Per Nouns.wtf, a few of the main characteristics of Nouns are:
- 100% of Noun auction proceeds are trustlessly sent to the treasury.
- Settlement of one auction kicks off the next.
- All Nouns are members of the Nouns DAO.
- Nouns DAO uses a fork of Compound Governance.
- One Noun is equal to one vote.
Why Do Nouns DAOs Matter?
Nouns is significant because the project vision is to attract developers who can convert materials on the Nouns protocol to apps that can be used by the general public.
This matters because it will raise awareness and bring more public participation in blockchain technology use cases. As you may know, there is still sizable scrutiny and skepticism about the cryptocurrency ecosystem from the general public. Hopefully, projects like the Nouns will contribute to raising awareness of blockchain technology efficacy and use.
The project also contributes to the building and improvement of avatar communities. These are communities of digital art profiles. They are digital spaces where blockchain technological innovations are flourishing.
Want to Get in on the Fun?
You can have some fun and generate your own Nouns in the Nouns Playground. What you generate will not actually be available for investment, but it’s a neat way to play around and explore the technology in the growing world of NFT generative art.
Nouns DAOs are one of the most innovative aspects of the evolving NFT space. We are still in the early days of NFTs, DAOs, and the ever-evolving blockchain technology so it is exciting to see how the technology develops.
Source NFT Plazas
