• A member of the Ethereum Name Service (ENS) DAO has proposed to liquidate 10,000 ether (ETH) to fund running expenditures over the course of the next two years.
• The ENS DAO’s treasury currently holds 40,746 ETH and 2.46 million USDC.
• The value of the ENS token has increased from $10.73 to $13.68 since the beginning of the year.
The Ethereum Name Service (ENS) DAO, a decentralized autonomous organization, has recently proposed to liquidate 10,000 ether (ETH) in order to fund running expenditures over the course of the next two years. 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 engaged in conversation over the draft proposal that was handed in on the 18th of January.
The treasury of the DAO has a current balance of 40,746 ETH as well as 2.46 million USDC. To create a minimum of $13 million worth of USDC stablecoins, the sale of 10,000 ETH would be conducted through a Gnosis auction. Despite the fact that ENS brings in income in the form of ETH, thanks to its protocol, the DAO is in a precarious situation since it has such a high degree of exposure to a single volatile asset.
The price of ether has decreased by 68.6% from the debut of ENS in November 2021, going from $4,850 to $1,526 in that time. However, the value of the ENS token has increased from $10.73 to $13.68 since the beginning of the year. This development comes amid various assumptions surrounding ETH’s staking making rounds. Staking on Ethereum has been picking up steam over the last few months as an increasing number of users opt to stake their ETH in order to receive rewards.
The DAO will now debate the issue further and could vote on whether or not to execute the proposal. If the proposal is accepted, it will be the first time that the DAO liquidates a significant portion of its funds in order to fund its operations. The move would also provide an interesting insight into the potential implications of a large-scale sale of ETH, as well as the perception of the asset by the broader Ethereum community.