FloorDAO Failed to Take on Promises, Send $2.5M to Splinter Group 

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.

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The NFT finance-focused crypto group, FloorDAO successfully branched to allow investors who are not in favor of the long-term vision of the DAO to exit. A decentralized Autonomous Organization (DAO) is a system accountable for distributed decision-making, entity ownership, and management. FloorDAO aims to develop products for “NFT-Fi”, NFT finance where NFTs can be used as collateral.

Within a week, FloorDAO sent around $2.5 Million to a splinter Group named FloorkDAO. Why did FloorDAO do so? What’s the reason behind the same? Let’s uncover the whole case.          

Why Did FloorDAO Do So? 

According to investors, the NFT-focused fork of OlympusDAO, a decentralized currency protocol failed to fulfill its promises related to assets and finances. Disagreement of the FLOOR token holders over FloorDAO’s project made all the difference. The project is a spinoff of Olympus DAO, a cryptocurrency protocol that holds an important place in the crypto industry for its innovative fundraising methods, treasury management, and token issuance. 

The motive of FloorDAO is to maintain the token value at or above its treasury. In case, the token value declines below the threshold, the DAO is expected to address the case.

Unfortunately, the project failed in actuality, as the token’s price dropped below the book value, hitting the trust of FLOOR investors. Result of this, the FLOOR community opposed the project before the V2 upgrade. 

The FLOOR investors demanded to allow them to exit the DAO and acquire their shares before the upgrade. Keeping the whole scenario in mind, FloorDAO finally forked into two separate entities this week. The NFT finance-focused crypto group sent around $2.5 Million of its treasury to splinter group FloorkDAO which was managed by the investors and involved millions of holders. 

The redemption was initiated by the group that paid around $5 per FLOOR token and the dissatisfaction of investors gained enough influence to split into two parts, NFT Focus and the other is FloorkDAO. The split made it easy for the investors to exit the DAO. Addressing the investor’s decision, their only motive is to safeguard their position and the interest of all token holders who decided to leave the DAO.                  

FLOOR Current Performance 

FloorDAO’s native token, FLOOR streaming over the Ethereum network is in highlight nowadays. The token’s current price is $3.85, a decline of 0.84% in the past 24 hours with a trading volume of $2,574.57. FLOOR is currently trading on 4 active markets with $76,102.72 traded in 1 day. 

According to the data of CoinMarketCap, the market cap for the respective token is not available. In addition to this, the token does not possess any maximum supply and circulating supply.     

Conclusion     

FloorDAO, an NFT finance-focused crypto group decided to split into two separate entities that is NFT Focus and FloorkDAO. The group made it easy for the FLOOR investors to exit the DAO. FloorDAO sent $2.5 Million of its treasury to the splinter group.