Recently airdropped governance token, (Ethereum Name Service )ENS , is the current talk of the town after obtaining a fully diluted cap of over $5 billion. The Ethereum Name Service launched the digital token on Monday.
Ethereum Name Service launched the token to decentralize the domain for ETH wallets. According to the domain’s official announcement, users will use the token to govern protocol parameters and to vote on a proposed constitution.
Apart from voting on the proposed constitution, the token holders can also nominate themselves as delegates to help with ENS governance. They do this by ensuring the protocol develops and grows in the right direction. If an ENS holder doesn’t want to be a delegate (s), he can weigh in on proposals or draft their own on the ENS governance forum.
More on the ENS Token
The official announcement also stated that the ETH wallet users who have an ENS domain are eligible to claim ENS tokens. Users can claim the tokens on the claims site up until May 4, 2022. The domain will send all unclaimed tokens to the DAO treasury.
Domain (.eth domain) holders could claim a quarter of the total supply of ENS tokens. Each wallet received varying tokens. Domain holders received tokens dependent on the amount of time the wallet held its domain, whether it had a primary ENS, and the wallet’s expiry date.
According to CoinGecko, the token ranks as the 138th-largest crypto in terms of market cap. The token has a market cap of $235 million. Additionally, the token has a fully diluted valuation of a whopping $5 billion.
About Ethereum Name Service
The Ethereum Name Service, popularly known as the ENS, has the sole purpose of providing human-friendly names instead of long addresses. This service is built on completely decentralized smart contracts.
Consequentially, the Ethereum Name Service enjoys better security than that of the DNS system. Ethereum Name System is the blockchain equivalent of the Domain Name System (DNS).
It allows the domain users to register their wallet addresses under a unique domain name. As a result, funds transfers are made directly to a name instead of directly to an address.
Is the domain open to anyone? Yes, it is. Anyone can own a .eth domain. Users can own a domain by participating in an auction process that the blockchain entirely mediates.
Users bid on a name after a required wait for the name to become available. The blockchain reveals the bids to find out the highest bid. The highest bid wins the name, which is locked in a smart contract for a year. During the one-year period, the user is at liberty to lease the name, loan it, sell it, add extra data or create subdomains.
Nick Johnson set up the Ethereum Name Service alongside Alex Van de Sande. Both of whom are Ethereum Foundation alumnae. The pair received a $1 million grant for their research and development of ENS.