0x1aa55a5f…bdacsent to0xf790a5f5…1365·#22,118,444·view on Etherscan
There’s some confusion here. I’m going to try to be as clear as possible, and answer these points.
- Burn of tokens:
I’ve never said that the tokens had been burned, I said that the burn of the tokens was something that had been on our minds ever since last year, when we realised that some allocations were starting to be out of sync with the new NOGS structure. This is yet to happen, and has always been set to happen in 2025.
- Inflation and burn rate:
Inflation has never been minted, and the estimated burn rate refers to an automatic burn linked to future products' utility.
- Ownership of the LP:
We organized the NOGS presale to create an asset to increase the value of NOGS in the long term. Last year the priority was liquidity, we were at the top of the memecoin bubble and liquidity for new tokens was critical. That’s why we decided to sell 20% of our supply and allocate 100% of the amount into the LP. But as we said at the time, that asset was always going to be used to make NOGS bigger. April 2024: “These fees will be used to boost NOGS adoption and unlock new use cases around it. This can include: - New developments by the team to lock NOGS and provide new utilities and use cases to holders. - Strategic partnerships. - NOGS integrations by other projects. - Listing on exchanges. - And more.”
Plus, we’ve also always said that managing the fees from the Party was something we were trying out and that we had veto power on everything. We had always considered them as an asset, but we wanted to give the community the opportunity to participate as a way to create engagement and brainstorming.
However, it was clear from the beginning that this was not the best choice as most of the people who bought during the presale sold during the market selloff. Which is when we decided to manage the funds internally, thinking we would have found a different way in the future to test the same kind of collaboration but with actual holders.
Which is also why we were originally planning to use the unlocked funds to inject eth into the DAO through bids and the acquisition of Nouns that would have increased the NOGS pool (which was going to be shared with the other communities through the delegation program we are working on). Plus we would have executed an additional “buy and burn” to make nogs recovery easier.
This obviously doesn’t exempt me from the lack of communication that characterized last year.
Again, I’m sure that with good communication, context and updates, this would have all been clearer from the start.
- Balancing of the LP/Party Fees:
Yes, currently the LP is balanced. We locked the funds for 1 year to allow us to eventually reallocate part of the funds to the most critical utilities, as we had the goal to make part of the locked LP unnecessary. We were hoping that this would have happened thanks to an exponential increase of the price of NOGS. With the current bear market however, we still reached a similar situation, with a big size of the LP unnecessary compared to the current MC and supply in the hands of holders. This is what I meant with “rebalance” by reducing the LP. With the current plan, the rebalanced LP will be injected into the DAO through bids with the goal to increase the Nouns in the NOGS pool (which is still one of the most important NOGS utilities). It will also allow us to expand the pool into other nounish DAOs using the same mechanism. It ensures continued support for Noggles Club drops, keeps the team operational until our revenue-generating products go live, and enables the launch of a monthly “buy back and burn” program designed to strengthen long-term growth. This way, we will be able to complete our pipeline of products without the stream, and we will also bring new resources to the dao.
- Selling of the supply:
Yes, I sold those NOGS. At that moment, it seemed the best path to overcome last year’s challenges. Looking back, it was obviously a mistake and I’m sorry for that. We already lost the stream which was supposed to continue for over 9 months. I’m 100% aware of this mistake, I’m paying the price for it and we’re now figuring out our next steps.
However, ever since prop 711 I never sold a single NOGS. The small amount that was recently sold was to pay Links back, as I wanted to solve that situation as soon as possible.
So no, I didn’t continuously sell NOGS “as recently as last week despite the $1k a day stream”.
- Unnamed wallets:
No, there isn’t really a specific reason. I have a habit of switching wallets when handling larger transactions. I did the same automatically with the 5k I sent to Links last week. It wasn’t until I saw the list of wallets that I realized how messy those transactions looked. In hindsight, it probably would’ve been better to organize everything under fewer wallets.
- Other fixes around NOGS:
We're also using this moment to remove any remaining centralization from NOGS—because it's clear that central points of control have caused issues.
NOGS has grown into a utility token with multiple use cases and governance power, and it's become obvious that holding too much of the supply ourselves is no longer sustainable.
To avoid problems like this in the future, we're moving quickly to fully decentralize the token.
This was already on our roadmap for later this year, but we’re accelerating the timeline.
We're talking:
- Renouncing contracts
- Gradual and automated burning of all NOGS still stored on mainnet
- Permanent cancellation of inflation
- And more.
All of this, together with the developments around the LP will be the core of the growth of NOGS for this year.
CONCLUSION
We’ll need a few days to regroup and put together a proper roadmap - there’s a lot to organize.
But you can expect consistent updates every step of the way.
For the past few years, we've bet everything on Nouns. Building for this ecosystem has been our full-time job, and still is.
Our goal now is to learn from what went wrong and take this moment - however painful it may be - as a chance to make NOGS stronger and more powerful than ever before.