NOUNS

NOUNS is an ERC-20 token launched by the Nouns DAO on both Ethereum Mainnet and Base, to fractionalize ownership of any Nouns ERC-721 non-fungible token (NFT). Each Noun NFT can be divided in into one million tokens at a 1:1000000 ratio. A user who accumulates 1 million $nouns can redeem it for a Noun NFT.

The official Nouns DAO created and launched the $nouns token.

Nouns DAO utilizes a fork of Compound Governance and is the main governing body of the Nouns ecosystem. The Nouns DAO treasury receives 100% of ETH proceeds from daily Noun auctions. Each Noun owner is an irrevocable member of Nouns DAO and entitled to one vote in all governance matters. Noun votes are non-transferable (if you sell your Noun you also transfer the voting power) but can be delegated, meaning you can assign your vote to someone else as long as you own your Noun.

Nouns is a project that encompasses many initiatives, but the primary focus is the Nouns NFT collection, a set of 8-bit style humanoid profile pictures (PFPs) that are algorithmically generated and stored as a 32-by-32-pixel image directly on the Ethereum blockchain.

One new Noun NFT is created and auctioned off every day, with the proceeds of the auction going into the Nouns DAO treasury. The holder of a Noun is then a part of the Nouns community and has the ability to vote in onchain governance.

The Nouns DAO’s adjusted total supply is calculated based on NFT holdings. The formula it uses is: (total supply)-(nouns NFTs held by the treasury)-(nouns held by forks)-($nouns tokens held by the treasury/1 million).

For example, given a total supply of 500 Nouns NFTs:

• Total supply: 500
• Nouns held by the treasury: 50
• Nouns held by the escrow: 40
• $nouns held by the treasury: 2.5M
• Adjusted supply = 500 - 50 - 40 - (2.5M / 1M) = 410 - 2 = 408.

Nouns tokens ($nouns) are officially issued on Base and Ethereum networks. You will find the official $nouns token for each network in the related tokens list above.

$nouns is the only ERC-20 token equivalent officially supported by Nouns DAO and the only Nouns derivative token that is backed by a Nouns NFT.