ENS DAO proposes selling 10k ETH

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.

The decentralized names domain protocol saw over 2.8 million domain registrations in 2022. The draft proposal, which was submitted on Jan. 18, is now being discussed among the ENS community.

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.

Read Also

• Stargate Partners with Metis to improve Interoperability