FloorDAO Fork: Activist Investors Reap a $2.5 Million Bounty
A campaign against FloorDAO, an NFT (Non-Fungible Token) finance-focused crypto group, led to a forking of the entity into two separate entities. This move was an effort to shake off the activist investors who had amassed an influential stake in the project, resulting in a substantial bounty payout of $2.5 million.
FloorDAO operates with a mission of developing products for the rapidly evolving sector termed as “NFT-Fi” (Non-Fungible Token Finance). This niche focuses on leveraging the unique attributes of NFTs to create new financial products and services.
The activist investors, disenchanted by some operational aspects of FloorDAO, launched a campaign to restructure its governance. This led FloorDAO to fork into two distinct entities, consequently transferring over $2.5 million of its treasury, which included both crypto tokens and NFTs, to a splinter group known as FloorkDAO. The splinter group, controlled by the activist investors, promptly divided the bounty among themselves, a move that significantly revalued the FLOOR tokens. Each FLOOR token’s value soared to nearly $5, up from $1.89 at the start of the year. This redemption process offered a lucrative exit for those investors who were part of the campaign.
Post campaign, the value of the remaining FLOOR tokens exhibited a notable change, currently trading around $3.88. This indicates a recalibration in the token’s market valuation, reflecting the dynamics and the value to those investors who chose to retain their holdings in FloorDAO rather than exiting with the splinter group.
The successful campaign against FloorDAO embodies a burgeoning trend of crypto activism where investors, leveraging the decentralized and transparent nature of blockchain technology, drive changes in the operational and governance structures of crypto entities. This case highlights the tangible financial outcomes that such activist campaigns can yield, marking a noteworthy chapter in the broader narrative of decentralized finance governance.
