ENS DAO may sell ten thousand ETH to raise funds

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Ethereum
ENS DAO may sell ten thousand ETH to raise funds

A member of the Ethereum Name Service (ENS) DAO, which stands for decentralized autonomous organization, has suggested in a governance proposal that the organization liquidates 10,000 ether (ETH) to fund running expenditures over the course of the next two years. 

The ENS is a decentralized framework for registering domain names, and in 2022 it managed to record more than 2.8 million domain registrations. The ENS community is now engaged in conversation over the draft proposal that was handed in on the 18th of January.

The treasury of the DAO now has a balance of 40,746 ETH as well as 2.46 million USDC. Through the use of a Gnosis auction, the sale of 10,000 ETH would result in the creation of a minimum of $13 million worth of USDC stablecoins.

Does ENS benefit ethereum?

The price of ether has decreased by 68.6% from the debut of ENS in November 2021, going from $4,850 to $1,526 in that time.

According to the suggestion, despite the fact that ENS brings in income in the form of ETH, thanks to its protocol, the DAO is in a precarious situation since it has such a high degree of exposure to a single volatile asset.

Since the beginning of the year, there has been a significant increase in the value of the ENS token, which has gone from $10.73 to $13.68.

ETH staking on the rise despite the sell reports

This development comes amid various assumptions surrounding ETH’s staking making rounds. Staking on Ethereum has been picking up steam over the last few months as an increasing number of users opt to stake their ETH in order to receive rewards.

A venture partner at MetaCartel Ventures named Adam Cochran made the comparison in a tweet that staking ethereum is comparable to purchasing internet infrastructure following the dot-com crisis. 

The comparison is fascinating because it suggests that staking ethereum is not only a way to earn rewards but also an investment in the future of the ethereum network. This idea is intriguing because it suggests that staking ethereum is not only a way to earn rewards but also an investment in the future.

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Brenda Mary

Brenda Mary is a crypto enthusiast and a graduate of The University of Nairobi in economics. Brenda’s passion brings her back to her elementary school years as a poet. She enjoys discussing blockchain technology and is committed to producing original content. Brenda also covers other rapidly developing markets and economic and cryptocurrency studies.