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    Lil Nouns

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    Introduction

    Intro to Lil-Nouns

    Nouns are an experimental attempt to improve the formation of on-chain avatar communities. While projects such as Cryptopunks have attempted to bootstrap digital community and identity, Nouns attempt to bootstrap identity, community, governance, and a treasury that can be used by the community. An expansion DAO based on Nouns DAO, Lil Nouns DAO works to create a new layer within the Nouns ecosystem; Nouns as kids. By expanding the ecosystem, Lil Nouns DAO aims at exposing more people to Nouns.

    • One Lil Noun is born and trustlessly auctioned every 15 minutes, forever.
    • 100% of Lil Noun auction proceeds are trustlessly sent to the Lil Nouns treasury.
    • One Lil Noun is equal to one vote.

    Brief about Lil Noun DAO

    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 (if you sell your Lil Noun the vote goes with it) but delegatable, which means you can assign your vote to someone else as long as you own your Lil Noun.

    NOTE : In addition to the precautions taken by Compound Governance, Lil Nounders have given themselves a special veto right to ensure that no malicious proposals can be passed while the Lil Noun supply is low. This veto right will only be used if an obviously harmful governance proposal has been passed, and is intended as a last resort.

    Lil Nounders will proveably revoke this veto right when they deem it safe to do so. This decision will be based on a healthy Lil Noun distribution and a community that is engaged in the governance process.

    Where NFT?

    So how does one mint ? One can mint a lil noun NFT by going to the official website , connect wallet and bid for the upcoming NFT. The highest bidder in the 15 minute windows gets to claim the NFT and if he doesnt, then it goes to the next bidder.

    Note: NFT distribution other than open auction Because 100% of Lil Noun auction proceeds are sent to Lil Nouns DAO, Lil Nounders have chosen to compensate themselves with Lil Nouns. Every 10th Lil Noun for the first 5 years of the project (Lil Noun ids #0, #10, #20, #30 and so on) will be automatically sent to the Lil Nounder's multisig to be vested and shared among the founding members of the project.

    Lil Nounder distributions don't interfere with the cadence of 15 minute auctions. Lil Nouns are sent directly to the Lil Nounder's Multisig, and auctions continue on schedule with the next available Lil Noun ID.

    Reference-old submission

    Objective

    The Lil Nouns DAO was created as a sub-DAO from Nouns DAO. The Lil Nouns DAO compensates Nouns DAO by automatically sending every 11th Lil Noun (Lil Noun ids #1, #11, #21, #31 and so on) to the Nouns DAO Treasury.

    \n

    Estimate the total value of the Lil Nouns in the Nouns DAO treasury, and analyze the value of the Lil Nouns DAO to Nouns DAO. Feel free to include any other relevant trends you may find. Please use the core schema within the Ethereum database for this analysis.

    Methodology

    When a mint transaction occurs, an NFT is minted to a NFT deployer contract which then transfers it to the minter. To identify the mints accurately, we use the ethereum.core.ez_nft_mints table and filter using nft_address (0x4b10701Bfd7BFEdc47d50562b76b436fbB5BdB3B).

    We identify the NFTs sent to Nouns treasury by using the token id. If the token id gives us a reminder 1 when divided by 10, then it would mean that that NFT was deposited into the Nouns Treasury. In other words, if modulus ( tokenid, 10) =1 it would mean that this token would not be auctioned to the public and rather go straight into the Noun DAO treasury

    To find the average sale price of Lil NOUN NFT, we use the ez_nft_sale table. where we filter the records using the nft address being 0x4b10701Bfd7BFEdc47d50562b76b436fbB5BdB3B

    Questions answered

    1. How many lil nouns were sent

      1. Total sent
      2. Number of NFTs sent per day

    2. what was the amount of usd worth sent

      1. when average of all sales is considered
      2. A daily average method is used

    3. break up of noun treasury

      1. by number
      2. by eth value on current date

    4. number of lil-nouns to nouns

    5. profits from lil-nouns to nouns

    Analysis

    We start by having a look at the total number Lil Nouns sent to Nouns treasury

    Nouns treasury

    Let us now look at the Nouns DAO treasury and determine its breakup

    From the image on the left, we can say that around 99.9% of the value of Nouns treasury is made up of proceedings from Nouns NFT itself, while only 0.01% is from Lil Nouns.

    However, from the image on the right, we can see that of all the NFTs held by Nouns DAO. 47 % is of Nouns and 41% is of Lil Nouns.

    Value of Lil-Nouns to Nouns

    The value generated by Lil-Nouns to Nouns is not just based on the number of NFTs sent or the ETH sent. It can also act like a stepping stone for users to move into the Nouns project. So, we now see of there are any users who first bought a Lil-Noun Nft and then bought a NOUN Nft. Here, the value added to Noun DAO is not NFT or ETH but rather users. With the cost a NOUN Nft being prohibitively high for most users, lil-nouns can be within the budget. Hence, this would allow more users to try and learn more about the project before jumping onto the costlier Noun DAO.

    Conclusion

    1. A total of 286 Lil-Nouns were sent.
    2. We see that the number of lil-nouns sent to Nouns treasury was initally high, but now has reduced.
    3. Under the hypothetical situation where Nouns Dao sells Lil-Nouns as it receives them, they would have made a 400k USD worth ETH profit.
    4. around 99.9% of the value of Nouns treasury is made up of proceedings from Nouns NFT itself, while only 0.01% is from Lil Nouns.
    5. of all the NFTs held by Nouns DAO. 47 % is of Nouns and 41% is of Lil Nouns.
    6. 8 users first bought the Lil-Nouns NFT and then bought the Nouns NFT. Out of the 8 users, 0x021edd67d43b365a6401a5ee704aa6f264f3f4e4 user invested around 3.5 Million USD into the NOUNS project. This can be seen as an effect of him being bought onto the platform because of Lil-Nouns

    A total of 286 Lil Nouns were sent to the Nouns treasury since the inception of Lil-Nouns. Nouns with token id having a reminder 1 ( ie. mod(tokenid,10)=1 are sent to Nouns treasury). Every 10th Lil-Noun is sent to the NOUN treasury.

    We shall now look at the number of Lil- Nouns sent per day to Nouns treasury.

    We see that the number of lil-nouns sent to Nouns treasury was initally high, but has now reduced. This might be because the adequate number of Lil-Nouns were not being minted in the 15 minute window due to low demand. In other words, it appears that a lot of the times, users did not bid to mint in the 15 minute window.

    ETH value sent to Nouns

    We calculate the value of ETH sent in two ways.

    1. How much would Noun make by selling all NFTs at this instant. ( at the current market price)

    2. How much would have Noun made by selling all NFTs as it received them. ( price at the receiving moment).

    3. How much would Noun make by selling all NFTs at this instant. ( at the current market price)

    Below, We look at the amount of ETH equivalent the Lil Nouns has provided to Nouns treasury. We calculate this metric by finding the latest average selling price of al lil-Nouns on opensea and multiply it with the number of Lil-Nouns sent daily.

    According to the graph, the Lil-Nouns has sent 100k USD worth of lil-Nouns to the Nouns treasury. But this metric is flawed as the NFTs sent in the later stage were not of that value (in USD) as compared to the initial ones. So now, we calculate the average price of lil-Noun on opensea everyday and multpily it with the number of NFTS sent on that day.

    That is, we now calculate How much would have Noun made by selling all NFTs as it received them. ( price at the receiving moment).

    1. How much would have Noun made by selling all NFTs as it received them. ( price at the receiving moment).

    We calculate the daily price of LiL-Noun using the sales table and grouping by date. We then multiply the daily prices table with the respective number of NFTs sent.

    The total amount of ETH ( In USD) sent seems to have peaked initially and later saturated. This can be attributed to the falling price of eth itself. Under the hypothetical situation where Nouns Dao sells Lil-Nouns as it receives them, they would have made a 400k USD worth ETH profit.

    We see that a total of 8 users first bought the Lil-Nouns NFT and then bought the Nouns NFT. Out of the 8 users, 0x021edd67d43b365a6401a5ee704aa6f264f3f4e4 user invested around 3.5 Million USD into the NOUNS project. This can be seen as an effect of him being bought onto the platform because of Lil-Nouns. On average, a total of 7 Million USD worth of NOUN Nft was bought by lil-noun users. Adding on to that, the participation of them in the governance is one of the main value added to Noun DAO according to me.