• The ENS DAO has proposed liquidating 10,000 ETH to fund running expenses over the next two years.
• The DAO currently has a balance of 40,746 ETH and 2.46 million USDC.
• Ethereum staking has been increasing in popularity despite the sell reports.
The Ethereum Name Service (ENS) DAO has recently proposed a governance proposal to liquidate 10,000 of its ether (ETH) to fund running expenses over the next two years. This development comes at a time when the price of Ether has decreased by 68.6%, dropping from $4,850 to $1,526 since the debut of the ENS in November 2021.
The ENS is a decentralized framework for registering domain names and in 2022, it managed to record more than 2.8 million domain registrations. The ENS community is now in the midst of a discussion about the draft proposal that was handed in on the 18th of January. The treasury of the DAO currently has a balance of 40,746 ETH and 2.46 million USDC, and by utilizing a Gnosis auction, the sale of 10,000 ETH would result in the creation of a minimum of $13 million worth of USDC stablecoins.
Despite this, the value of the ENS token has seen a significant increase since the beginning of the year, going from $10.73 to $13.68. This has got many in the community speculating that the proposal may be beneficial to the ENS platform.
However, there is an increasing amount of users who are opting to stake their ETH to receive rewards and this has been picking up steam over the last few months. This has brought on various assumptions surrounding ETH’s staking, which has led to some speculating that the proposal may not be best for the ENS.
At the moment, it remains unclear what the outcome of the proposal will be. It could offer a much needed financial boost to the ENS, or it could have a detrimental effect on the value of Ether and the ENS token. The community is currently in the process of debating the proposal and it is likely that a final decision will be made in the near future.