Summary

• ENS DAO proposes liquidating 10,000 ETH for operating costs
• The proposal aims to secure future operations and development of ENS protocol
• The community will vote on the proposal

The Ethereum Name Service (ENS) decentralized autonomous organization (DAO) has proposed a governance proposal which outlines the intention to sell 10,000 ether (ETH) to cover operating costs over the next two years. ENS is a decentralized domain name protocol that has seen a significant growth in popularity, with over 2.8 million domain registrations recorded in 2022. The proposal, which was submitted on January 18th, is now being discussed among the ENS community.

The proposal suggests that the sale of 10,000 ETH would generate a minimum of $13 million in the USDC stablecoin via a Gnosis auction. The DAO's current treasury holds 40,746 ETH and 2.46 million USDC. The proposal notes that since the launch of ENS in November 2021, the price of ether has slumped by 68.6% from $4,850 to $1,526, and having so much exposure to a single volatile asset places the DAO in a vulnerable position.

The proposal also highlights that ENS generates protocol revenue in ETH, but the volatility of the asset makes it difficult to plan for the future and cover operating costs. The proposal argues that by liquidating a portion of the ETH holdings, the DAO will be better positioned to sustain its operations and continue to develop the ENS protocol.

It's worth noting that the value of the ENS token has seen a resurgence since the turn of the year, rising from $10.73 to $13.68. This could be a sign that the market is becoming more favorable for the ENS and other related projects. The community will now have to decide whether to approve the proposal and move forward with the sale of ETH or not.