ENS DAO Proposes Liquidation of 10,000 ETH, Staking Grows in Popularity

• A member of the Ethereum Name Service (ENS) DAO proposed to liquidate 10,000 ether (ETH) to fund running expenditures over the next two years.
• The ENS community is now discussing the proposal, and the treasury of the DAO currently holds 40,746 ETH and 2.46 million USDC.
• Staking on Ethereum has been steadily growing in popularity, as more and more users choose to stake their ETH in order to receive rewards.

The Ethereum Name Service (ENS) DAO, a decentralized autonomous organization, recently proposed a governance proposal to liquidate 10,000 ether (ETH) to fund running expenditures over the next two years. Since the introduction of ENS in November 2021, the price of ether has decreased by 68.6%, from $4,850 to $1,526. Despite the fact that the protocol brings in income in the form of ETH, the DAO is in a precarious situation as it has a high degree of exposure to a single volatile asset.

The ENS community is now discussing the proposal, with the treasury of the DAO currently holding 40,746 ETH and 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. There has been an increase in the value of the ENS token, which has gone from $10.73 to $13.68 since the start of the year.

Staking on Ethereum has been steadily growing in popularity, as more and more users choose to stake their ETH in order to receive rewards. A venture partner at MetaCartel Ventures recently stated that the amount of ETH staked has increased by over 100% since the start of 2021. This is in part due to the increasing number of decentralized finance (DeFi) projects running on the Ethereum blockchain. Staking rewards have increased from 4.6% to 6.7%, as the amount of ETH staked in the network has grown from 3.2 million to 6.4 million.

The ENS DAO is an important part of the Ethereum ecosystem, and its governance proposal could have major implications for the future of the network. The ENS community is currently discussing the proposal, and it is yet to be seen if it will be approved. If it is, the sale of 10,000 ETH would result in the creation of a minimum of $13 million worth of USDC stablecoins. This could potentially provide the DAO with the necessary funds to continue running its operations over the next two years.