The Ethereum Name Service (ENS) announced that it would revolve around a decentralized governance model. This decision opened the door to the formation of a decentralized autonomous organization (DAO). The empowering of the DAO starts with the distribution of the ENS governance token.
Following a widely lauded airdrop, the Ethereum Name Service is enjoying a price surge for its DAO. The ENS is a protocol that issues NFTs. These NFTs represent not only web domains but also Ethereum addresses.
Last night, ENS launched an airdrop portal for the recently issued ENS token. If you aren’t familiar with the term airdrop, it is a token distribution method. A portion of the circulating tokens is distributed to ETH addresses that fulfill certain requirements, such as having purchased NFTs.
ENS NFT holders are currently eligible for the claiming of tokens. Many users have reported having received allocations of $20,000 and above. Twitter user @adamdavidson shared that he received an allocation of $18,000, which he was pretty ecstatic about.
Currently, the project’s circulating market cap is more than $500 million. The token’s overnight price surge currently has traders eyeing valuations in billions. Unlike many Web3/crypto projects, the ENS has not received any venture capital funding.
Coinbase Gets a Seat at the Table to Govern the Ethereum Name Service
The allocation of ENS tokens to Ethereum Name Service domain holders was done using a formula that considered the duration an address held an ENS domain in addition to the time of its future registration.
Users were required to vote on four articles of a foundational ENS governance constitution before they could claim the allocated tokens. The four articles covered a number of issues.
The issues covered include allowing governance to alter registration prices, ensuring governance can’t revoke ENS ownership, allowing governance control over a grants program, and giving the governance the authority to integrate with other software naming conventions such as DNS.
Last week, ENS opened applications for delegates. Many powerful crypto organizations applied. Among these organizations was Coinbase. The US-based centralized exchange shared through a tweet that it would be participating in the governance of Ethereum Naming Service. Coinbase is, in fact, the largest delegate.
The delegating of voting power before claiming of the tokens, the requirement to vote, and the smooth rollout of the tokens have earned ENS a ton of praises, with many dubbing the process one of the most successful airdrops in the history of crypto.
More on the ENS Token
At the time of writing, the ENS token is trading at $71.48, a 51.85% increase in the last 24 hours. This value is a peak for the token, which is currently on its second day of trading. The ENS token is currently in 47,000 wallets and growing.
The token currently has a fully diluted market cap of $7,148,444,437, a 63.66% increase from day one’s market cap of $3 billion. Additionally, then token has a 24-hour volume of $1.48 billion. There is currently a circulating supply of 14.56 million tokens out of the total 100 million tokens.