A governance proposal has been put forward by a member of the Ethereum Name Service (ENS DAO, a decentralized autonomous community. The proposal suggested liquidating 10,000 ETH, in a bid to cover operating costs over the next 2 years.
Currently, the Decentralized organization currently holds 40,746 ETH and 2.46 million USDC in its treasury. The sale of the highlighted 10,000 ETH would generate a minimum of $13 million in the USDC stablecoin via a Gnosis auction
Since the launch of the ENS DAO, in November 2022, the price of ETH has seen a decline of 68.6% from $4,850 to $1,526 at the time of writing. Due to the prolonged bear market, the DAO may be in a vulnerable position due to being overexposed to a single volatile asset.
As a result, the DAO is deliberating on converting about 25% of its ETH holdings into USDC.
“While ENS generates protocol revenue in ETH, having so much exposure to a single volatile asset places the DAO in a vulnerable position,” the proposal stated.
The value of the ENS token has seen a resurgence since the turn of the year, rising from $10.73 to $13.68.