Ethereum Name Service (ENS) DAO delegates voted to sell $16.5 million worth of altcoins from the DAO’s treasury to fund the project over the next 18 to 24 months.
Funds will be used to support development activities and key working groups
ENS DAO has voted to sell 10,000 Ethereum (ETH) from the DAO’s treasury to fund the project over the next 18 to 24 months via CoW Swap. According to figures from Tally.xyz, the vote ended with 89% of all respondents favoring the plan. Key ENS personalities supporting the vote include founder Nick Johnson and ENS Foundation president Brantly Millegan.
ENS DAO will now continue to sell 10,000 ETH for USDC. These funds will come from the project’s expendable treasury, which is entirely in Ethereum (ETH). The proposal aims to reduce the DAO’s dependence on Ethereum by selling 10,000 ETH.
The sale will take place via CoW Swap. The DAO hopes to raise at least $13 million from the sale and increase the DAO’s USDC balance to over $15 million.
The issue of how altcoins/tokens should be sold was controversial
The proposal specified a single exchange of 10,000 ETH for USDC. Some USDC delegates advocated dividing the sale into smaller units. They also suggested that the DAO should use a dollar-cost averaging technique to get the best value from the sale. Ultimately, the DAO went for a single swap strategy. Founder Nick Johnson said on the DAO forum that this is because a phased sale process would require delegates to vote for each phase.
Most of the funds raised will go towards meeting the daily expenses made by ENS Labs. The Singapore-based ENS project developer receives a daily flow of 11,500 USDC from the DAO. In two years, this spending bill will reach $8.4 million.
Funds raised will also be used to support the DAO’s three key working groups. The proposed budget could enable these working groups to request as much as $6 million over the next two years.
About ENS DAO
Ethereum Name Service is operated by a decentralized autonomous organization (DAO). The DAO itself is run by ENS token holders who can submit proposals and vote on them to determine the future development of the protocol.
What is the Ethereum Name Service (ENS)?
Ethereum Name Service (ENS) takes exactly the same concept as web domains but adjusts it to the needs of Ethereum users. At its core, ENS is a distributed, open and extensible naming system that runs on the Ethereum network. As Kriptokoin.com, we have included all the details about ENS in this article.
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