ENS DAO Proposes Governance Reform via 5M Token Delegation

Key Facts

In a move aimed at enhancing decentralization and stimulating participation in decision-making, the ENS co-founder has introduced a proposal to delegate 5 million ENS tokens from the inactive community treasury. The plan involves splitting the voting power equally, with 1 million tokens allocated to each of five groups: users, developers, integrators, traditional DNS participants, and the governance community. This initiative seeks to reform the governance system without transferring economic ownership of the tokens, ensuring broader representation across the ecosystem.

This shift comes as major Decentralized Autonomous Organizations (DAOs) strive to improve voting efficiency; for instance, protocols like Uniswap and Aave have faced similar challenges regarding the concentration of voting power. According to industry reports, activating stagnant treasuries is a growing trend to ensure that a limited group does not dominate critical decisions. Market data suggests that governance stability often reflects positively on investor confidence in the sustainability of smart-contract-based projects.

Traders should monitor the progress of this proposal through the formal ENS DAO voting stages, as its approval could pave the way for more flexible governance models in the Web3 sector. Global markets are also awaiting significant economic data that may impact risk appetite in digital assets, including the U.S. JOLTs Job Openings scheduled for release on June 30, 2026.