Is this the Second Rug Pull for Fame Ladies?

Fame Ladies has yet again found itself in controversy. In a new development, 27 members of the Fame Ladies community have launched an in-depth investigation into the project’s ownership and financial management. While the project was initially community-led, the investigation accuses the current owners, Ashley Smith and Danielle Davis, of excluding the community, using the project for personal gain, and receiving excessive compensation. Significantly, the investigation raises questions about transparency and honesty in the NFT space and the need for community involvement in project governance. There’s a lot to unpack here – let’s dive in!

The Fame Lady Squad Story

Firstly, let’s go back to the beginning of the Fame Lady Squad story. In July 2021, Fame Ladies made waves in the NFT community. This was due to its refreshing take on female empowerment and equality in an industry that’s often male-dominated. Significantly, the project offered 8,888 avatars, each representing a unique and diverse woman. Of course, buyers were drawn to this unique selling point, and the project was minted out in two days.

However, the “women led” project turned out to be a complete lie. After selling over $1.5 million worth of art, a community member discovered that Russian men were actually behind Fame Ladies, despite their claims to be three women from Norway and the USA. This revelation shocked the NFT community, highlighting the importance of transparency and honesty in the world of NFTs.

In August 2021 it seemed that the community was heading towards a positive outcome when real women from the community took over the collection. So, how did this actually happen?

Ashley Smith, Danielle Davis, and Saul gathered the community in Discord and encouraged them to come together. Subsequently, the community voted for them as the primary custodians of the group. Smith made it clear at the time that they were not the owners of the project, but they were the stewards. Essentially, the community and the stewards concluded that everyone wanted what was best for the Fame Ladies moving forward.

A Community-Led Investigation

Now, fast-forward to today and the newest controversy. In another surprising twist, the community is once again coming together to take back the collection. More specifically, 27 members of the Fame Ladies community have launched an in-depth investigation into what has actually happened since the initial takeover in August 2021. Wen Netflix documentary?

Smith and Davis are still in charge of Fame Ladies, and now call themselves ‘owners’ rather than ‘stewards.’ Additionally, the core community of holders have distanced themselves from Smith and Davis’ Fame Lady Squad and are now calling themselves the Fame Lady Society. Ultimately, they want the project ownership and treasury to be handed back to the community. They also want the opportunity to allow Fame Ladies to be the community-driven project it claims to be. Essentially, it seems that Fame Ladies is not as community-led as we were led to believe. So, what’s actually happening?

Fame Lady Society Rises Up in Response to Community Exclusion

The Fame Ladies community investigation was initiated by the sudden shutdown of the community. However, there were signs of trouble well before. Despite claiming to be community-led, the stewards continually ignored community input and failed to provide significant engagement opportunities. Smith and Davis promised regular voting and quarterly meetings as part of the project roadmap, yet the last Town Hall meeting took place in April 2022, and the last community vote was in the fall of 2021.

To make matters worse, when community members and NFT holders requested more transparency, the owners made the Discord server read-only. This decision has not only disconnected the community from each other but also prevented them from communicating with leadership and having a say in the project’s direction. As a result, the community created the Fame Lady Society.

Community Funding for Personal Gain?

Following the initial rug pull in 2021, Fame Ladies had no mint funding and relied solely on royalties and donations. Notably, Boss Beauties and Boringstone generously donated to the project to support the community and the women in charge of the brand. Between July 2021 and January 2023, Fame Ladies received 160ETH, with 85ETH coming from donations. However, the community investigation revealed that half of the funds went directly to Smith and Davis. The Fame Lady Squad Podcast, compensating moderators, and filling the Fame Ladies treasury accounted for the other half of the funds.

The Fame Lady Society are concerned about the use of the funding. This is because Smith and Davis promoted their podcast as separate from Fame Ladies and its community, explicitly saying it’s not there to benefit holders. Additionally, after only three months as stewards, Smith and Davis received $22,000 in project funding, which raises further questions about financial management. Storing the project’s smart contract in Smith’s personal wallet has also raised concerns about security.

Finally, in April 2022, the Fame Ladies treasury had 50ETH. But, by June 2022, only 8ETH remained, with most of the funding going to Davis. This situation raises questions about how a podcast that does not benefit the community is receiving community funding. High compensation for leaders who don’t fulfill promises also raises questions.

What Really Happened with Daz3d

Now, let’s talk about a particularly noteworthy moment that led to the creation of the Fame Lady Society – the Daz3d acquisition. So, what is Daz3D? Markedly, Daz3d is a digital content marketplace that provides 3D models and software for creating and rendering 3D graphics and animations. They have partnered with iconic brands like Nike, RTFKT, and Coca-Cola. Daz3d acquired Fame Ladies in September 2022, and the “owners” were hired as paid employees. Although Smith and Davis asserted that no buy-out took place, they received funds to benefit the project, and planned to transfer the smart contract. However, the community did not participate in the decision-making process, and the partnership ended in March 2023.

Smith and Davis Respond to Criticism

As you might expect, Fame Lady Society’s investigation into Smith and Davis has caused quite a stir on Twitter. Smith has publicly responded to the allegations through medium articles and videos. Additionally, Smith and Davis hosted a Twitter space to address community concerns. However, they did not allow community members to speak.

Smith took the time to address concerns about the transition from steward to owner of Fame Ladies. She explained that this was a necessary move to have complete authority over the smart contract. As for keeping the smart contract in her personal wallet, Smith admitted to using it to purchase NFTs. But, she made it clear that she used her own funds. Smith also assured the community that her security practices are sound.

Despite the project’s promise of community involvement and governance, Smith and Davis never established a DAO. In their response, they cited “too many cooks in the kitchen” and a lack of bandwidth and resources. In regards to the Discord shutdown, Smith and Davis described the community hub as a “source of distracted energy” that raised “serious security concerns.” Furthermore, Smith referred to the Fame Lady Society as a negative sub-community.

In response to the allegations of mismanaging funds, Smith and Davis maintained that they were paid a fair wage for their time as leaders. They also haven’t shared a full list of expenses yet.

The Future of Fame Ladies

So, what’s next? The community is taking charge! With a clear determination to safeguard their project, the Fame Lady Society has set up their own website, Twitter, and Discord. Additionally, they are wrapping their Fame Ladies NFTs in preparation for their own smart contract. And, while they remain hopeful for a future handover from the current owners, the community is demanding a formal council with decision-making power, a transparent and accountable project, handover of the treasury, and a secure smart contract in a multi-signature wallet. The project, as advertised to the NFT world, should be a true community-led project. Ultimately, that’s what the Fame Lady Society is working tirelessly to achieve.

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