Section 1.1: Daily Minting Process

In a marketplace flooded with NFT avatar projects, each vying for attention through artistic flair and added utility, Nouns DAO has adopted an unconventional approach. Most projects typically launch a predetermined number of NFTs all at once, often ranging from 5,000 to 10,000. They may vary in pricing and sales strategy, but the core model remains: release all NFTs simultaneously.

However, when Nouns DAO debuted on August 8, 2021, it chose to forge a different path. Effectively, the project is in a constant state of "launching." Every day, a new Noun is created through a public auction that lasts 24 hours. Participants can see the current highest bid, and the highest bidder at auction's end secures the new Noun.

Before initiating a new auction, the previous one must be finalized. This involves a transaction on the Ethereum blockchain, which can be executed by anyone through the Nouns DAO website. This transaction serves three purposes: it transfers the newly minted Noun to the auction winner, generates the next Noun, and kicks off the next auction.

This unique mechanism allows the Nouns DAO community to expand gradually, contrasting sharply with the rapid growth typical of many NFT avatar projects. While the Nouns model presents its own advantages and challenges, it certainly represents an intriguing experiment in community engagement.

The video titled WTF is Nouns DAO? provides insights into the innovative structure and community dynamics of Nouns DAO, highlighting its significance in the NFT space.

Section 1.2: Unique Artwork and Value

All Nouns are distinct 32x32 pixel characters inspired by various entities—people, places, and things—allowing users to embody whatever they choose online. The artwork of Nouns is not only playful and quirky but also easily identifiable as part of the Nouns universe, characterized by a vibrant OG crypto pixel art feel.

Interestingly, there are no specific rules dictating the rarity of attributes within the Nouns. Every Noun is treated as equally rare, setting it apart from most other avatar collections. Nevertheless, certain Nouns are perceived as more "valuable" based on auction prices and market demand, prompting a fascinating analysis of how value is assigned.

Many collectors seem to prioritize three key factors:

1. Lower Numbers are Preferred: In collectibles, lower edition numbers often command higher prices. Some Nouns enthusiasts particularly seek out two-digit numbers or those minted in the early days.
2. Aesthetic Appeal Matters: Collectors are often willing to invest more in NFTs that visually resonate with them. Unique traits or standout avatars tend to garner greater interest.
3. Emerging Rarity: Although no formal rules exist regarding attribute scarcity, rarity often evolves organically. A newly minted Noun may possess a unique trait, elevating its value significantly.

If you're considering acquiring a Noun or exploring related projects, it's wise to focus on what truly matters to you, as speculation can be misleading.

Section 2.1: Community Empowerment

The Nouns brand and its artistic creations exist under a "CC0" license, which means you can utilize them without concern for copyright issues. Not only is repurposing encouraged, but the DAO may also provide funding for such initiatives!

All revenue from Nouns auctions is funneled directly to the DAO treasury, which currently holds over 26,000 ETH (approximately $27 million). This treasury supports participants in the Nouns community, enabling investment in projects that foster the growth of the Nouns ecosystem.

If you have an innovative "Nounish" idea, you can apply for funding from the treasury. There are three funding tiers to choose from: Small Grants, Prop House, and formal Proposals. The community decides which projects receive funding, reflecting the decentralized nature of Nouns DAO.

Only Noun owners can propose and vote on new initiatives, with each Noun equating to one vote. Discussions take place on Discourse before proposals are officially submitted on the Nouns website.

Section 2.2: Expanding the Nouns Ecosystem

The creativity and engagement level within the Nouns community is remarkable, with 145 extension projects already in existence. Among these, Lil Nouns stands out as a highly successful derivative project, offering a new Noun every 15 minutes instead of every 24 hours. As of now, over 2,200 Lil Nouns have been minted, typically selling for between 0.3 and 0.5 ETH.

In addition to derivative projects, community members have developed valuable resources and engaging sites, such as rarity and governance analytics, Nouns DAO stats on DUNE, and the Nouns DAO newsletter.

What's particularly exciting is how the Nouns brand is transcending the NFT realm. Recent proposals funded by the DAO include:

• Nouns Coffee: A project aimed at creating the first-ever Nounish consumable brand to be available in local markets.
• Nouns Children's Book: Designed to introduce the vibrant world of Nouns to younger audiences and their families.
• Nouns x MadHappy Apparel: A proposal for a collaborative apparel capsule that merges Nouns with the MadHappy brand.
• 'Nouns Around Town' Documentary: A comedic film exploring the groundbreaking nature of Nouns DAO and its journey within the web3 community.

The founders have expressed that Nouns could evolve into the Web3 equivalent of Disney, shaped by community input and creativity. I am eager to witness this evolution and hope to contribute along the way.