The Ethereum Name Service DAO is facing a significant governance battle. A proposal would delegate management of its massive $400 million treasury to the restructured ENS Foundation. This fund, holding ETH and stablecoins, is more than double the protocol's entire circulating market cap of $170-190 million.
The plan, put forward by ENS COO Katherine Wu, aims to streamline routine treasury operations. Tokenholders would retain veto power over decisions they oppose. The proposal is currently in a temperature check phase and would still require a final on-chain vote.
The debate has divided key figures. Brantly Millegan, who authored the ENS constitution, argues the move undermines DAO principles and risks centralizing power. In contrast, founder Nick Johnson supports the change and plans to self-delegate his tokens to back the proposal.
The financial pressure is real. ENS has seen declining revenue, giving the efficiency argument weight. For token holders, the restructuring presents a dual risk: it could enable more effective capital deployment for growth, or it could erode trust in decentralized governance.