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Lil Nouns DAO utilizes Nouns DAO's fork of Compound Governance and is the main governing body of the Lil Nouns ecosystem. The Lil Nouns DAO treasury receives 100% of ETH proceeds from daily Lil Noun auctions. Each Lil Noun is an irrevocable member of Lil Nouns DAO and entitled to one vote in all governance matters. Lil Noun votes are non-transferable but delegatable, which means you can assign your vote to someone else as long as you own your Lil Noun. If you sell your Lil Noun, its voting power will go with it to the new owner.
Lil Nounders have chosen to compensate the Nouns DAO with Lil Nouns. Every 11th Lil Noun for the first 5 years of the project (Lil Noun IDs #1, #11, #21, #31, and so on) will be automatically sent to the Nouns DAO to be vested and shared among members of the project. Nouns DAO distributions don't interfere with the cadence of 15-minute auctions. Lil Nouns are sent directly to the Nouns DAO Treasury, and auctions continue on schedule with the next available Lil Noun ID.
In this analysis, the state of Nouns DAO Treasury has been evaluated since the launch of Lil Nouns.
The required data for this analysis were collected from the fact_event_logs, ez_nft_transfers, and fact_hourly_token_prices tables of the core schema of the ethereum database. It should be mentioned that the content and methods of this analysis were highly influenced by the previously submitted dashboards of Lil Nouns Voting Activity and Lil Nouns Secondary Sales Activity by the author. The methods used to extract minting data and contract addresses have been explained in full detail in those reference dashboards.
Overview
As previously mentioned, The Lil Nouns DAO Treasury receives capital in the two forms of ETH that proceed from daily Lil Noun auctions, and every 11th Lil Noun that will be automatically sent to the Nouns DAO. Since the launch of Lil Nouns, the DAO Treasury has received nearly 300 Lil Nouns which if hypothetically they want to sell right now, considering the average price of around $700 each, it would be around $300k which is not a huge amount. On the other hand, the main source of revenue for the DAO has been the ETH generated from the auctions of Lil Nouns. In total, the DAO Treasury has received around 1.5M worth of ETH from the auctions of around 2.4k minted Lil Nouns which is worth around $1.6M considering the recent ETH price.
The DAO has also some expenses or investments which are decided through the proposals on the governance of the DAO. Once a proposal is accepted, it will be executed and the required capital will be provided by the treasury. Buying the lilnouns.eth Ethereum Name Service (ENS) or multiple Nouns are examples of DAO’s expenditure. Overall, they have cost the DAO around 630 ETH in total. When subtracted from the generated ETH from the auctions, resulting in a balance of around 870 ETH for the DAO.
In conclusion, the state of Lil Nouns DAO Treasury has been investigated in this analysis. Although the DAO receives a Lil Noun every 11th of them that is minted for the first 5 years of the project, the main source of capital is the generated ETH volume from the auctions of minted Lil Nouns. Since its launch, the DAO Treasury has received around 1.5M worth ETH which it later spends around 630 ETH of it to purchase an ENS and 5 Nouns. As the average price of newly minted Lil Nouns has been decreasing compared to the Lil Nouns minted in the first month, the income of DAO is stabilizing at lower levels. Considering all these, it is important for the DAO to properly govern its treasury with a current balance of around 900 ETH.
The daily analysis of mints has demonstrated that although there were periods of high demands which resulted in the increase in the price and the number of mints, the overall trend has been to the downside for both the number of Lil Nouns that were minted as well as the number of minters and the average price of each Lil Noun. As they have been generating every 15 minutes, the demand will eventually decrease and reduce the price as a result. However, it should be noted that the DAO is probably affected by the whole crypto industry downtrend as well. It can be seen that the generating value has plateaued in the past 30 days and can be considered stable for the DAO.
The price of ETH was extracted from the fact_hourly_token_prices table and average in the last 3 days to mitigate the possibility of missing data. Also, the expenditure of the DAO was collected from the fact_event_logs table using the ExecuteTransaction event and the DAO executer address. The minting data were collected using the AuctionSettled event and the event_inputs column.