On Monday, the distributed domain protocol Ethereum Name Service, or ENS, launched its own governance token for its new decentralized autonomous organization, or DAO, in an effort to distribute voting rights to active users of the ecosystem.
Cointelegraph spoke with Brentley Milligan, Director of Operations at ENS, to learn more about the nonprofit’s decision to move to the DAO model and his thoughts on the power of the ENS community:
“ENS is an open public protocol. The main components of ENS are decentralized and self-running (for example, no one can name another person .ETH), but there are some things that require some human discretion. .
He said that earlier, the ENS was governed by a four-seven multi-signature scheme, with members of the respective projects acting as key stakeholders. He facilitated upgrades, managed the .eth pricing registration mechanism for domain names, and handled ENS Treasury’s funds.
However, according to Milligan, changing this multisig and passing ENS governance to the community through the DAO “has always been the plan”:
“We’re doing it now because we think both the ENS and DAO space have matured a lot.”
When users claim the ENS tokens allocated in the protocol’s recent airdrop, the service requires participants to immediately vote to ratify the proposed ENS constitution and authorize the DAO to take over the functions of Multisig.
Community members are also required to hand over their future DAO voting power before claiming their tokens. The delegation process allows a small number of active users to make decisions for the ENS community, rather than requiring constant interaction with each tokenholder in the space each time a new vote is required. Although a large number of ENS contributors volunteered to act as potential representatives, users are not required to simply select from the platform’s suggested list. Instead, they can delegate their votes to any address, including their own.
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Regarding the ENS token distribution and how the fair governance model operates, Brantley told Cointelegraph:
“ENS DAO will [be] One-token-one-vote, but we have chosen distribution rules that favor egalitarianism and users over bookmakers.”
He explained that nonprofits allocate tokens based on the number of days a person has held a single ENS name, not the number of domains an individual has registered.
Users who pay renewal fees up to eight years in the future are scheduled to receive an additional cache of tokens in the airdrop, and for those who have their primary ENS name set up, the number of tokens will be multiplied by two. She goes. Participants of protocol discord and Twitter are also eligible for additional claims.
The DAO will ultimately be in charge of spending any revenue received by the non-profit organization of the Protocol. According to ENS Constitution Article 3, funds are to be allocated for ENS development, wider ecosystem and public goods within Web 3.0. Millegan added that there is “no profit-sharing motive” and that the token-based DAO system “allows for a great deal of flexibility.”
Within 24 hours of its launch, the new ENS Governance Token had already reached a fully diluted valuation of $3.16 billion. A day later, at the time of publication, that number has topped $8 billion and continues to grow.