Ethereum Name Service Considers Starting Endowment Fund With $17 Million

Key Points:

• DeFi Treasury Manager Karpatkey has requested that the Ethereum Name Service (ENS) DAO take into account activating the DAO’s endowment fund with 10,766 ether ($17 million).
• Karpatkey’s $17 million capital request would serve as the fund’s initial seeding. There will be two more monthly payments until the $51 million financing target is reached for the fund.

According to a recent governance proposal, DeFi Treasury Manager Karpatkey has requested that the Ethereum Name Service (ENS) DAO take into account activating the DAO’s endowment fund with 10,766 ether ($17 million).

The ENS DAO established the endowment fund as a treasury management measure to maximize its reserves. Karpatkey was chosen by the DAO to oversee the fund in a governance vote that was completed last year. For the DAO, Karpatkey is tasked with overseeing $51 million in assets. The DAO’s treasury, which has assets totaling $1 billion, will provide these funds.

If accepted, Karpatkey’s $17 million capital request would serve as the fund’s initial seeding. There will be two more monthly payments until the $51 million financing target is reached for the fund.

40,959 ether ($64 million) are now held in the ENS DAO’s $1 billion treasury. All of the DAO’s ETH funds, less $16 million, will be in the endowment when it is completely seeded. The DAO’s expenses will have a two-year runway thanks to the leftover $16 million.

According to Karpatkey’s suggested strategy, the fund will retain 59% of its ether holdings. The proposal specifies that the remaining amount will be converted to USDC. Karpatkey will invest the money in a couple DeFi investment methods that are ether- and dollar-neutral. The stated objective is to generate annualized returns of up to 5.43%.

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