ENS Monthly Community Update - May 2026
This is the May 2026 Community Update to the broader ENS Community, aimed at increasing transparency and awareness around treasury activities.
The full May monthly endowment dashboard is available on Syncrone.fi.
ENS Token Update
ENS token holder distribution among the top holders remained broadly stable in May, with ownership concentrated primarily in the Timelock contract (~52%), centralised exchanges (~25%), and ENS-affiliated wallets including the DAO and ENS Labs (~20%). No material shifts in holder composition were observed during the month.
ENS returned −0.6% in May, outperforming both BTC (−3.3%) and ETH (−10.5%) over the period. All three assets declined against a weaker broader market backdrop led by a sharp fall in ETH, though ENS proved relatively resilient and finished the month close to where it started. The chart below shows normalised performance indexed to 100 at 1 May 2026.
DAO Financial Update
Endowment Update
Asset allocation:
- Assets under management (AUM): $86,911,026.98 with a capital utilisation of ~100%.
- Endowment allocation split into ~58.5% ETH (~$50.9M) and ~41.5% stablecoins (~$36.0M). This is broadly in line with the 60/40 mandate and minimum stablecoin runway requirements.
- Key transactions and rebalancing activities: Multiple rebalancing operations were executed throughout the month to maintain the target 60/40 allocation and optimise yield within the mandated allocation caps for each protocol.
- Marked-to-market valuation: decreased by $6,329,691.87, driven by broad ETH price depreciation over the period (ETH −10.5%), with staked ETH positions (StakeWise −$2.62M, Stader −$2.53M) and Rocket Pool (−$440k) accounting for the majority of the decline. Stablecoin positions contributed modest positive yield, led by Sky (USDS in SSR) at +$50k.
- Endowment Strategy Return: For the period of May 2026 the Endowment returned $215,606 from strategies managed by KPK.
May was a negative month for the Endowment on a mark-to-market basis, driven primarily by a broad decline in ETH, which fell approximately 10.5% over the period. Underlying strategy performance remained positive, with the Endowment generating ~$216k in yield across its staking and lending positions, and the 60/40 ETH/stablecoin allocation was maintained throughout the month.
Protocol Distribution
The Endowment continues to diversify protocol exposure across 9 distinct protocols, maintaining a balanced distribution between staking and lending strategies. The largest position is StakeWise at 26.4% of total funds (~$23.0M). On the staked ETH side, StakeWise (26.4%) and Stader (23.4%) remain the primary staking exposures, with EtherFi (4.6%) and Rocket Pool (4.0%) contributing further. On the lending side, the stablecoin allocation is spread across Aave (15.3%), Morpho (12.8%), Sky (10.7%) and Fluid (2.6%). Across all positions, no single protocol exceeds 30% of total Endowment exposure, ensuring concentration risk remains controlled.
| Protocol | Allocation % | USD Value | Strategy |
|---|---|---|---|
| StakeWise | 26.4% | $22,987,218 | Staking |
| Stader | 23.4% | $20,373,879 | Staking |
| Aave | 15.3% | $13,335,934 | Lending |
| Morpho | 12.8% | $11,103,544 | Lending |
| Sky (USDS in SSR) | 10.7% | $9,338,261 | Lending |
| EtherFi | 4.6% | $4,013,286 | Staking |
| Rocket Pool | 4.0% | $3,509,319 | Staking |
| Fluid | 2.6% | $2,249,239 | Lending |
Community Updates
Security update: Zodiac Roles Modifier. In early June, KPK proactively patched a potential issue in the underlying Zodiac Roles Modifier framework (Roles Modifier v2 and Delay Modifier v1.1.0). Our assessment confirmed no impact on the Endowment, and no action is required on the side of ENS — even without the patch, the Avatar Safe permission framework would have prevented the issue from resulting in any loss of funds. Full details are available on the forum here.
2026 Investment Policy Statement (IPS). The 2026 IPS disucssion remains underway. The temp check draft, which codifies the 60/40 ETH/stablecoin target, formalises a three-year stablecoin runway floor (~$49.3M), and introduces a moderate-risk allocation tier, is posted for community feedback ahead of a Snapshot social vote. The discussion can be found here. This will progress to ratification via social vote as soon as practical.
Upcoming Timelock sweep. The Endowment sweep to the Timelock is estimated to executed by KPK within the next two weeks. This will be done in coordination with Meta-Governance. This transfer will move funds to cover DAO operational expenses and streams for the next six months.