Investor Disagreements Force FloorDAO to Send $2.5 Million to Splinter Faction – What's Going On?

cryptonews.com:

FloorDAO, a crypto group focused on NFT finance, has split into two separate entities due to disagreements among investors. 

The project, which aims to develop products for "NFT-Fi," transferred over $2.5 million from its treasury, consisting of crypto tokens and NFTs, to a splinter group called FloorkDAO. 

The group is controlled by activist investors who were dissatisfied with the project's direction. 

The move initiated a redemption process that paid nearly $5 per FLOOR token, close to its highest value this year, despite the current trading price being $3.88.

The division within FloorDAO comes after months of internal conflicts over the project's commitment to its obligations towards FLOOR token investors. 

FloorDAO originated as a spinoff of Olympus DAO, a significant protocol that revolutionized fundraising, token issuance, and treasury management.

Given its lineage, FloorDAO's native token was expected to maintain a value equal to or higher than its treasury's "book value." 

The project's initial documentation outlined a mechanism to address any discrepancy, allowing for asset distribution in the event of a fall below book value.

However, when the price of FLOOR inevitably dropped below book value, the theoretical arbitrage mechanism did not come into effect. 

Last year, project insiders promised to introduce a redemption mechanism to rectify this issue, according to Discord records and conversations with long-term investors. 

However, they later abandoned this promise and instead planned a protocol upgrade that removed voting power and treasury rights from token holders.

Before the implementation of the "v2" upgrade, a subset of the FLOOR community began opposing it, demanding the opportunity to exit the DAO and claim their