On Monday, the Ethereum Distributed Domain Protocol for a Service, or ENS, launched its control token in an effort to distribute voting rights for its new decentralized autonomous organization, or DAO, among active users of the ecosystem.
Cointelegraph spoke with Brantley Milligan, CEO of ENS, to learn more about the nonprofit’s decision to transition to the DAO model and his thoughts on the strength of the ENS community:
“ENS is an open public protocol. The core components of ENS are decentralized and self-propelled (ie, no one can take someone else’s .ETH name), but there are some things that require some human judgment.”
He noted that ENS was previously controlled by a four-by-seven multi-signature scheme, with participants in related projects acting as principal owners. They facilitated renewal, managed the .eth domain name pricing engine, and managed ENS treasury funds.
Milligan said that replacing this multiple signature and transferring control of the ENS to the public through the DAO “was always part of the plan”:
“We are doing this now because we believe that both the ENS and the DAO Chamber are mature enough.”
When users request assigned ENS tokens in a recent protocol airdrop, the service requires members to immediately vote to ratify the proposed ENS constitution and allow the DAO to take over the multi-signature function.
Community members must also delegate future voting rights to the DAO before they can claim tokens. The authorization process allows fewer active users to make decisions for the ENS community rather than requiring constant interaction from every token holder in the room each time a new vote is required. While a large number of ENS contributors have volunteered to serve as potential delegates, users do not have to choose only from the platform’s suggested list. Instead, they can delegate their votes to any address they want, including their own.
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Regarding the distribution of ENS tokens and the operation of the fair governance model, Brantley told Cointelegraph:
“The ENS DAO will have one symbol – one vote, but we have chosen distribution rules that favor equality and users over speculators.”
He explained that the nonprofit awarded tokens based on the number of days a person had at least one ENS name, not based on the number of domains they registered.
Users who have paid the renewal fee up to eight years in the future must receive an additional token buffer in the airdrop, and for people whose main name is listed in the ENS, the number of tokens they are entitled to is multiplied by two. … Discord and Twitter Minutes members are also eligible for additional claims.
Ultimately, the DAO will be responsible for using any proceeds generated by the non-profit protocol organization. According to Article 3 of the ENS Constitution, funds must be allocated to the development of ENS, the broader ecosystem, and public goods within Web 3.0. Millegan noted that “there is no incentive to share profits,” and that the DAO token-based system “allows for greater flexibility.”
Within 24 hours of launch, the new ENS governance token had already reached a fully diluted value of $3.16 billion. A day later, at press time, that number has crossed $8 billion and continues to grow.