November 11, 2021

Ethereum Name Service becomes DAO

In early November, the developers of Ethereum Name Service announced a rapid transition to a decentralized management system - DAO.

A week later, on November 8, Ethereum Name Service launched its own management token under the ticker ENS and began distributing it to users. The procedure began at 7 p.m. and will run until May 4, 2022.

The number of tokens each user receives depends on how long they hold the domain. The short term involves a payout of about 200 ENS tokens. Medium is 500 ENS, and the earliest users get 1,000 ENS each. A total of 25 million tokens are allocated to Airdrop.

In addition to receiving tokens, users must vote on the four articles of the ENS governance constitution. And they must also delegate their right to vote before they can access the tokens.

Shortly after the launch of the ENS distribution campaign, the largest cryptocurrency exchange, Binance, announced the listing of the token. The price rose to around $70 after the listing. And at the moment, it was rising to $84.

So users got about $14,000-$70,000 each during the airdrop, if you consider the current price of $70 per token.

According to Dune Analytics, a total of 137,689 addresses qualify for the airdrop, of which 62,634 have already completed the process and claimed their tokens.

Why DAO?

Cointelegraph spoke with ENS COO Brantley Milligan and found out that moving to a decentralized organization was always part of management's plans.

ENS is an open public protocol, with major components decentralized and operating autonomously. But some things require human intervention, he noted.

According to Milligan, ENS was previously governed by a four-of-seven scheme, meaning four keys out of seven were enough to make a decision. Now, the developers have decided that the DAO space is "ripe" for putting the project's management in the hands of the community.

Ethereum Name Service is a name system service developed on the Ethereum blockchain. It provides easy-to-read names, such as alice.eth, for machine-readable identifiers. The ENS token will now be used to manage the project.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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