On Monday, a service called Ethereum, or ENS, launched its own governance token, distributed domain protocol or ENS, to distribute voting rights for its new decentralized autonomous organization, or DAO, among active users of the ecosystem.
The Cointelegraph spoke with Brantley Millgan, COC of the ENS, to learn more about the nonprofit’s decision to move to the DAO model and his thoughts on the power of the ENS community:
«ENS is an open public protocol. The core components of ENS are decentralized and work on their own (ie no one can take someone else’s name .ETH), but there are a few things that require a little human judgment. ”
He noted that ENS was previously dominated by a four-to-seven multiple signature scheme, in which participants in related projects acted as key holders. They facilitated the renewal, operated the .eth domain name pricing mechanism, and managed ENS treasury funds.
Replacing this multisig and transferring control of ENS to society through DAO was “always part of the plan,” Milligan said:
“We are doing this now because we believe that both ENS and DAO are mature enough.”
When users require designated ENS tokens in the last airdrop of the protocol, the service requires members to vote immediately to ratify the proposed ENS constitution and allow DAO to take over the multi-signature functionality.
Community members must also delegate their future voting rights to the DAO before they can claim their tokens. The delegation process allows fewer active users to make decisions for the ENS community, instead of forcing all token holders in the room to constantly interact with each other 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 from just the platform’s suggested list. In addition, they can delegate their votes to any address they want, including their own.
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Regarding the distribution of ENS tokens and how the fair management model works, Brantel told Cointelegraph:
“ENS DAO wants one, one vote, but we have chosen distribution rules that favor equality and users over speculators.”
He emphasized that the symbols assigned to a non-profit organization are based on the number of days a person owned a single ENS name, and not on the number of domains registered by a person.
Users who have paid renewal fees for up to eight years in the future must receive an additional token cache in the airdrop, and for people assigned the base ENS name, the number of tokens they qualify for is multiplied by two. Discord and Twitter protocol contributors are also entitled to additional claims.
Ultimately, the DAO will be responsible for using any revenue generated by the non-profit organization through the protocol. Pursuant to Article 3 of the ESA Constitution, funds are allocated for the development of the ESA, the wider ecosystem and public goods within Web 3.0. Millegan noted that there is “no incentive to share profits” and that the token-based DAO system “provides more flexibility.”
Within 24 hours of launch, the new ENS corporate governance token has already reached a fully diluted value of $ 3.16 billion. One day later, at the time of publication, this figure exceeded $ 8 billion and continues to grow.