A member of the Ethereum Name Service (ENS) DAO has suggested in a governance proposal that the organization liquidates 10,000 ether.
In a governance proposal, a member of the Ethereum Name Service (ENS) DAO, which stands for decentralized autonomous organization, requested that the group sell 10,000 ether (ETH) to pay for operating expenses over the next two years.
The decentralized domain name registration system known as the ENS registered more over 2.8 million domain names in 2022. The draft proposal that was submitted on January 18 is currently the topic of discussion among the ENS community.
There are currently 2.46 million USDC and 40,746 ETH in the DAO’s treasury. The sale of 10,000 ETH would generate at least $13 million worth of USDC stablecoins through the use of a Gnosis auction.
DOES ENS SUPPORT ETH?
Since the launch of ENS in November 2021, the price of ether has dropped by 68.6%, from $4,850 to $1,526.The argument goes that even if ENS generates revenue in the form of ETH thanks to its protocol, the DAO is in danger since it is so heavily exposed to a single volatile asset.
The price of the ENS token has increased significantly since the start of the year, rising from $10.73 to $13.68.This development comes as a number of suppositions about ETH’s staking are circulating.
As more users choose to stake their ETH in order to get rewards, staking on Ethereum has gained momentum over the past several months. Adam Cochran, a venture partner at MetaCartel Ventures, compared staking ethereum to buying internet infrastructure when the dot-com bubble burst in a tweet.
The parallel is intriguing because it implies that staking ethereum is an investment in the future of the ethereum network as well as a mechanism to collect rewards. This concept is exciting because it shows that staking ethereum is an investment in the future as well as a way to receive rewards.