What is Nouns DAO? Why are they switching to Solana from Ethereum?
In this blog, we will discuss what Nouns DAO is? Is it better than Crypto Punks and Bored Ape Yacht Club? And why they switch to Solana?
What is nouns?
Nouns is a new Ethereum-based (now solana) NFT collectibles project just like CryptoPunks and Bored Ape Yatch Club with some differences. Instead of dropping a large amount of NFT collectibles onto the market like CryptoPunks and Bored Ape Yatch Club, Nouns mints and auctions a single NFT each day for indefinitely.
What is DAO
A DAO is an organization where control is spread out across the participants, instead of being built on a top-down hierarchy.
What is Nouns DAO
One of the main difference between CryptoPunks and Nouns is that all the money earned by selling CrytoPunks goes to the owners. In case of Nouns it goes to the Nouns Dao (decentralized autonomous organization), this DAO governs the project. And the DAO is controlled by the NFT owners. Each NFT is worth one vote. This vote can be used to vote for future governance decisions.
The founders reveive none of the money from the sales, but they get 1 out of every 10 Nouns for first 5 years. All the money in th DAO will be used to invest in other projects.
Why Nouns switched to Solana from Ethereum
For that let us understand what are the key differences between Solana and Ethereum
- To begin with Solana is super is fast with transaction handling capacity upto 50,000per second, whereas Ethereum is quite slow in comparison with 30 transaction per second.
- The block time of Solana is 400 milliseconds whereas that of Ethereum's is 10 seconds. Block time is the measure of the time it takes the miners or validators within a network to verify transactions.
- Gas fee for ethereum is very expensive sometimes $1000 whereas for solana the fees are negligible around $0.0001.
- Ethereum has high energy consumption to verify a transaction, Solana doesn't have such high consumption.
- Solana has suffered many DDoS attacks recently
In brief, solana is better for low transaction fee and speedy transfer, while ethereum is better for security and decentralisation
The people in Nouns DAO thinks overall Solana is the best for them rather than Ethereum!