This organization’s governance proposal explains its intention to sell ETH. The altcoin amount of DAO’s treasury holds 40,746 ETH and 2.46 million USDC.
Altcoin establishment submitted a new proposal
A governance proposal put forward by a member of the Ethereum Name Service (ENS) DAO, a decentralized autonomous organization, proposes liquidating 10,000 ether (ETH) to cover operating costs over the next two years.
ENS is a decentralized domain name protocol that registered more than 2.8 million domain registrations in 2022. The draft proposal, submitted on January 18, is currently under discussion among the ENS community. The DAO’s treasury currently holds 40,746 ETH and 2.46 million USDC. The sale of 10,000 ETH will generate a minimum of $13 million in USDC stablecoin via a Gnosis auction. cryptocoin.comAs we mentioned, ETH is instantly traded at $ 1.518.
Since the ENS was launched in November 2021, the ether price has dropped 68.6% from $4,850 to $1,526. The proposal states, ‘ENS generates protocol revenue in ETH, while so much exposure to a single variable asset puts the DAO in a vulnerable position.’ it said.
2.8 million domain names registered last year
Ethereum Name Service (ENS) saw a record number of lifetime domain registrations in 2022 amid a wider market frenzy where some traders are seeing domain names as investments. ENS is a decentralized domain name protocol that runs on top of the Ethereum network. It provides users with an easily readable name like ‘abc.eth’ instead of a complex, long-form alphanumeric address for their crypto wallet, similar to how the Domain Name System replaces catchy names like ‘cryptocoin.com’ for websites.
Data from Dune Analytics shows that more than 630,000 unique wallets generate 2.82 million domains, of which 459,000 are classified as ‘primary names’. Primary names are ENS addresses that resolve to a user’s crypto wallet and can be used as proxies to search for information about blockchain explorers such as Etherscan. The 2.82 million figure represents more than 80% of all registrations since the service launched in 2017.
According to the data, September saw the most ENS records with over 430,000 unique domains and December recorded the lowest with just 52,000 domains. But May saw the most new users, with over 64,000 users.
Research firm Delphi Digital said in a July note that some ENS buyers consider names as investments, buying popular and common names and selling them for profit. According to Delphi analysts, at the time ‘000.eth’ was sold for a record 300 ether (ETH), increasing interest in three-digit ENS names as ‘traders tried to exploit the scam’.
