Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnAISquareMore
Ethereum Name Service co-founder proposes delegating 5M ENS tokens to reform DAO governance

Ethereum Name Service co-founder proposes delegating 5M ENS tokens to reform DAO governance

CryptobriefingCryptobriefing2026/07/06 16:51
By:Cryptobriefing

ENS co-founder Alex Van de Sande put forward a proposal on Monday to delegate 5 million ENS tokens from the project’s dormant community treasury directly to individual participants. The move, he said, would end the DAO’s dependence on what he characterized as “just a 1-of-1 multisig.”

A governance crisis months in the making

The proposal didn’t materialize out of nowhere. ENS DAO has been mired in governance disputes throughout June and July 2026, with blocked votes and escalating tensions between community factions. At the center of the controversy sits Nick Johnson, ENS’s other co-founder, who reportedly holds approximately 50% of the active voting supply through self-delegated tokens.

The disputes have also touched on attempts to expand the ENS Foundation’s role, which some community members interpreted as a potential “governance attack.”

Advertisement
window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "de1434f5-fa9e-44a6-93c3-4c2439763717"; sevioads_preferences[0].adType = "banner"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences);

What 5 million tokens would actually change

The ENS DAO originally received an allocation of 50 million ENS tokens. Of those, 5 million were claimed early in 2021 during the project’s initial distribution phase, leaving a substantial portion sitting in treasury wallets.

Van de Sande’s proposal would take 5 million tokens, roughly 10% of the original allocation, and delegate them to individual governance participants. The tokens would remain in the treasury, but their voting power would be assigned to active participants. The ENS DAO treasury valuations range from approximately $88 million in liquid assets to over $350 million in total worth when including the underlying ETH-based endowment managed by Karpatkey.

Katherine Wu, another prominent figure in ENS governance circles, has been involved in the ongoing discussions.

What this means for ENS holders and DAO watchers

Van de Sande’s framing of the current setup as a “1-of-1 multisig” is a deliberate provocation, designed to highlight that the current governance apparatus has the trappings of decentralization without the substance. A multisig wallet typically requires multiple signers to approve a transaction. A 1-of-1 multisig is just a regular wallet with extra branding.

Delegating treasury tokens to active participants, rather than selling them or letting them sit idle, represents a middle path between hoarding assets and diluting existing holders. However, redistributing voting power means existing large holders would see their relative influence diluted — the same stakeholders who would need to approve the proposal are those whose power it would reduce.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

The “storage giants” distribute large dividends but fail to eliminate the “Korea discount”; investors question whether reforms in Korean stocks are sufficient

The dividends from Samsung and SK Hynix are testing South Korea's reform initiatives, as investors seek greater cash returns.

智通财经2026/09/10 03:52
The “storage giants” distribute large dividends but fail to eliminate the “Korea discount”; investors question whether reforms in Korean stocks are sufficient

Bank of Japan Policy Board Member: Will Continue Raising Interest Rates to Ensure Price Trends Do Not Exceed 2%

Kazuyuki Masu, a member of the Bank of Japan's Policy Board, stated that the Bank of Japan will continue to raise its benchmark interest rate to ensure that the inflation trend does not exceed 2%.

智通财经2026/09/10 03:41
Bank of Japan Policy Board Member: Will Continue Raising Interest Rates to Ensure Price Trends Do Not Exceed 2%