SummaryIn this post, I propose an update to the Nouns DAO software. Any ETH held by the treasury in excess of total_nouns_count * trailing_N_day_median_auction_price can be burned. The goal of this change is to create a code-level incentive for the DAO to (1) spend the treasury, (2) grow the Nouns supply, and (3) increase the auction price. This change will also mitigate the “risk free value” arbitrage (detailed below). When this change is first introduced, there should be a waiting period be...

SummaryIn this post, I propose an update to the Nouns DAO software. Any ETH held by the treasury in excess of total_nouns_count * trailing_N_day_median_auction_price can be burned. The goal of this change is to create a code-level incentive for the DAO to (1) spend the treasury, (2) grow the Nouns supply, and (3) increase the auction price. This change will also mitigate the “risk free value” arbitrage (detailed below). When this change is first introduced, there should be a waiting period be...