Watching this video by Guy about SEC reasoning for considering some tokens as securities should be taken seriously.
Very soon, this will become a worldwide and regulators will come after cryptocurrency teams everywhere. As we have mentioned so many times on other threads, it doesn’t matter what the team repeatedly claims “$ENS is just a governance token”. What really matters is the implications of how the business is founded and then operated:
One major flag is the treasury of the DAO. By its existence, it is implied that $ENS has a monetary value that can be channeled as funding vehicle for projects. Unlocking it on through a vesting plan further enforces this implication.
Recommendations:
a. Burn the treasury.
b. Lock forever and delegate it as a voting power for future .eth domains purchaser (voting power allocation can for example for the next 1000,000 registrations until all is distributed).
The second big red flag is the team allocation of tokens that are “Vested”. Vesting is always a financial tool.
Recommendation:
a. Unlock all tokens to founders and contributors immediately with no vesting plan. This clearly states this is a voting power and not a locked monetary value.
I didn’t mean completely wipe off the DAO treasury. The treasury still has $ETH generated from the registration and renewal fees which should be enough to sustain the project.
I only meant to burn the $ENS tokens allocated to the DAO treasury.
I feel a 2nd airdrop would be the way to go instead of a burn if that was the way things were going, but I also don’t think they should be going in that direction
Burning the treasury seems a bit too much to be honest, although looking at the massive revenues from registration and renewals alone, it does seem like the DAO treasury is excess and unnecessary. Does ENS really need $250M+ treasury? It’s a fairly simple protocol in the end.
Rest of the points mentioned in the post stand though. It’s not a matter of if but when the men in suits come knocking. If I am not mistaken, the DAO multisigs have used Tornado in the past as well. “We are a DAO registered on Mars” argument holds little water. Foundation, Directors, Founding Company, biggest Delegates, Multisig signers are all going to get a visit at some point. What makes it worse is that ENS token is clearly being used a means of funding and compensation which leaves the “but it’s only a governace token” claim perhaps a bit naive.
