ENS DAO Passed Proposal To Sell 10,000 Ether To Support ENS Labs
- The ENS DAO has decided to liquidate 10,000 ETH for USDC in order to pay for running expenses for the following two years.
- 89% of participants voted in support of the plan, which also seeks to lessen the project’s exposure to ether in the event of a market move to the negative at the end of the vote.
- On the decentralized exchange aggregator CoW Swap, 10,000 ETH will be liquidated, and the decentralized autonomous organization anticipates receiving at least $13 million in USDC stablecoin.
Delegates of the Ethereum Name Service (ENS) DAO have decided to sell 10,000 Ether from the DAO’s funds in order to pay for the project’s operations for the upcoming 18 to 24 months.
The initial submission of the governance plan was made on January 18. Tally data shows that 89% of participants supported the plan, which also seeks to lessen the project’s exposure to Ether in the event of a market move to the negative. ENS Foundation chair Brantly Millegan and founder Nick Johnson are two prominent ENS figures who backed the decision.
Currently, the DAO’s treasury has 40,746 ETH and $2.46 million in USDC.
The ENS DAO will now sell 10,000 ETH on the decentralized exchange aggregator CoW Swap, anticipating at least $13 million in the USDC stablecoin in return. This fund will come from the project’s completely ether-backed spendable treasury. The proposal seeks to lessen the DAO’s exposure to ETH by selling 10,000 ETH.
The best way to sell the tokens generated some discussion. The plan called for exchanging 10,000 ETH tokens for USDC all at once. Delegates from the USDC argued in favor of dividing the sale into smaller halves. To gain the most out of the sale, they also recommended that the DAO use a dollar-cost averaging strategy.
The DAO has ultimately chosen a single swap method. According to Johnson on the DAO forum, the rationale for this is that a staged sale procedure would have needed delegates to vote for each step.
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