Client Incentives is a new mechanism for Nouns to pay clients (frontends) for interactions they facilitate between users and the Nouns protocol.

Client Incentives is a new mechanism for Nouns to pay clients (frontends) for interactions they facilitate between users and the Nouns protocol. In our previous post we described the goals and direction we’re exploring with client incentives. If you haven’t read it, please do. In this post, we’ll describe the scope for the first version we plan to release.

Nouns Fork is a minority protection mechanism that allows Nouners to exit Nouns DAO (aka OG DAO), into a fresh copy of Nouns DAO, reusing their token IDs and art, and the Nouns governance system, and taking with them their fair share of OG DAO’s treasury into the fork DAO treasury. Nouners need to band together to meet the fork threshold to be able to fork. We launched V1 of Nouns Fork with a known griefing vector, which we’d like to better explore and explain, and ultimately decide if there’s a worthwhile solution we should build.

In July 2023 we did two audits for a big Nouns DAO upgrade, first with Spearbit and then with code4rena. During the Spearbit audit, one of the fixes we made, for a medium severity issue, introduced a new critical issue; the critical issue was not caught in the first audit’s mitigation review, but was luckily caught in the second audit.

For most of 2023 Nouns DAO auctions have been won by ‘arbitrageurs’ whose primary goal is to extract profits from the DAO’s treasury by redeeming their Nouns to the DAO at a higher price than they paid at auction. This arbitrage is the result of the project’s history, having been launched in the previous bull cycle when treasury grew much faster than the DAO could spend it, followed by the bear market we’re in right now, with auctions settling at much lower prices.

Like any other protocol, Nouns DAO relies on clients (webapps / mobile) to interact with its smart contracts. There are many reasons for the DAO to benefit from having multiple clients available, to name a few:

Welcome to the second post in the Nouns Governor series; Please check out the first post for more context.

This is the first post in a series in which we’re trying something new: to design a new Nouns DAO version in public, in collaboration with the community.

This is a quick analysis we composed with the help of community members, to try and make more tangible sense of wag’s original post, and feedback on twitter these past few weeks.