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ENS Achieves Full Decentralization, Faces Registration Decline

Ethereum Name Service (ENS) Achieves Full Decentralization Through DAO Takeover

The Ethereum Name Service (ENS) has reached a significant milestone: control of the service is now fully in the hands of its token-holding community. This was confirmed by ENS founder Nick Johnson in a recent post on X (formerly Twitter).

ENS DAO Takes Control

The full decentralization of the ENS follows a unanimously adopted proposal, which envisioned the transfer of the ENS root key from the multisig system to the ENS DAO. Previous administrators of the ENS multisig contract included Sergey Nazarov from Chainlink, Dan Finlay from Metamask, Taylor Monahan from MyCrypto, Aron Fischer from Colony, Jason Carver and Martin Swende from the Ethereum Foundation, as well as Johnson himself.

New Powers of the ENS DAO

According to the proposal, the ENS DAO now not only has control over the protocol’s root key, but also over the creation and management of Top-Level Domains (TLDs). While the “.eth” TLD is set and cannot be changed, the DAO can generate and monitor the creation of additional TLDs. In addition, the token holder community has been granted the authority to update and repeal resolutions.

Decline in .eth Name Registrations

In October, the protocol recorded the highest monthly number of ENS name registrations since the beginning of the year. According to an overview by Dune Analytics, a total of 56,869 .eth name registrations were made in this 31-day period. However, this number declined in November, with only 20,877 name registrations being made. This represents a decrease of 63% from the previous annual high.

Financial Impact

As for the monthly revenues from new name registrations and renewals, this value has been declining since August. Monthly revenues from new registrations fell by 64% between August and November. So far this month, revenues of $349,000 have been generated in this area.

Outlook

Together with the Labs team, the DAO will explore the possibility and potentially implement primary domain names on Layer-2 solutions (L2s).

Sources: Dune Analytics, X (formerly Twitter)