This post aims explore different ways ENS tokens could be used to grow the adoption of the Ethereum Name Service Protocol.
Since inception Ethereum has continued to drive forward towards new directions, empowering not only innovation but the willingness to self examine and re-focus. ENS has played a foundational role in Ethereum’s journey, and this proposal shares our thinking about how ENS can continue to take steps to ensure we’re best positioned to serve Ethereum and the wider ecosystem.
When thinking about successful projects & DAOs that lead the industry, ENS is the clear winner, developing natural PMF since day one. This has led to consistent .eth registrations, integrations and growth, however this doesn’t mean ENS shouldn’t think about how it can incentivise the right user behaviour.
ENS has one of the largest token treasuries of any DAO, currently holding over $1 billion USD worth of ENS tokens. Leveraging a fraction of this treasury to distribute to humans, communities, addresses and organisations, that in turn grow the adoption of ENS, registrations, and accessibility within Ethereum is a huge win.
To compare:
- Optimism has distributed over $100m USD towards retroactive incentives after airdrop one.
- Uniswap has committed over $100m USD towards community grants in 2025 & 2026.
- Worldcoin has distributed over $800m USD to registered users since WLD launched in 2023.
These are just three examples of the kind of token spending that is happening across the ecosystem from similar size protocols.
Below are three sub-proposals that we’ve been thinking about in this direction - we aren’t married to any of these in their current form, but want to start this conversation as a catalyst for ideas in this direction!
1. Enscribe Contract Naming Incentives
Enscribe is an ENS-aligned org focused on getting smart contracts across the ecosystem to start using ENS names. The advantages of this are obvious;
- Enable wallets and users to know with confidence which contract they’re interfacing with.
- Minimize the threat of scams and confusion with similar addresses being deployed by nefarious actors with the hope of tricking users.
- Further propagates ENS as the inbuilt identity layer for ethereum.
This kind of initiative is a clear public good which helps every onchain user, thus why this proposal seeks to explore how ENS DAO could drive this adoption.
By creating an incentive pool for smart contract naming, (both retroactive and forward-looking depending on technical restraints), ENS DAO can help to instil this as a default step in deploying any significant contract.
For example - contracts where this proposal would make significant impact to user experience include:
- DEX pools
- Lending markets
- Bridges
- Well known DAO multisigs
- Web3 Communities (donation, DAOs, etc)
- MANY MORE
All of these contracts could be presented onchain with a name like swap.etherex.eth contracts.fluid.eth, securitycouncil.ens.eth, etc
This proposal outlines two strategies:
- For existing contracts: The ENS community would be tasked with creating a ‘wishlist’ of the top contracts that do and do not have ENS names. Then the Enscribe team would scope the technical capacity of each contract adopting an ENS name, and highlight those that are feasible.
- For future contracts: ENS DAO would create a framework and tooling to encourage deployers to name their contract during the creation process, and receive some incentive for doing so.
2. ENS Community based experimentation
There are a number of small, ENS-centric, communities formed around the ownership of particular ENS names. This kind of ‘social sub-community’ is unique to ENS, and creating space within ENS DAO for these organisations to experiment with their own experiences, tooling, merch, etc is an exciting opportunity. This in turn signals to others that ENS DAO is supportive of people using ENS as a core organisational tool within their own communities.
As a first step, we propose an experiment around community decision making with the Pokemon ENS community. A small pool of ENS tokens would be made available for this community to direct towards initiatives as they see fit. Every* (Perhaps not every pokemon ENS and only certainly generations - exact structure TBD) Pokemon ENS gets some voting power in an onchain DAO. These voters can then vote on how to assign their onchain treasury with their ENS names as their vote.
This would come with strong guidance around best practices and types of experiments. (Or perhaps even better we ‘ask’ the Pokemon .eth community to formulate a plan for what these tokens could be spent on before distributing, although the vote mechanics are interesting)
Potential Experiments:
- Event budgets (Hosting a pokemon .eth event @ Devconnect).
- Treasury management (buying other ENS names, managing a collective treasury in a decentralised manner).
- Buying Pokemon related content, cards, etc.
- Producing content related to Pokemon ENS.
Discussion about the ethics of this proposal:
There is an interesting discussion about the idea of ENS DAO incentivising different digital communities to form & expand around given ENS names like Pokemon, Marvel, etc.
However, at its core, if we’re trying to think about these different communities and the impact they make, decentralisation is a key metric. Similar to the way many cryptocurrencies are judged based on their sufficient decentralisation, applying this same consideration to ENS sub-communities should be front of mind. For example; if a brand new TV show came out and one person collected all .eth names for that TV show instantly - this would likely not be a good fit for this type of program. However, our perspective is that the Pokemon ENS community has decentralised sufficiently over significant time.
Though there are market dynamics that this type of proposal could encourage, these dynamics exist regardless and we shouldn’t let them be a blocker for ENS DAO to supporting grassroots onchain communities that have been huge supporters of ENS more generally.
Disclosure: I, James.eth, have a Pokemon ENS name
3. Framework for ENS DAO to support web2 user acquisition
This proposal was inspired by a conversation with @mely.eth at Dappcon and thinking about the way that ENS can continue to drive adoption through existing web2 platforms, ie; digital banking, financial products, social media, etc. Right now many Web2 applications are leaning into Web3 and Ethereum (payments, social & infrastructure). The same utility that ENS provides within Web3 can also apply to the millions of new users being brought onchain by these organisations: wallet addresses are confusing - ENS names are not.
Thinking about how ENS can incentivise these users to interact with ENS and Ethereum while still receiving upside is the crux of this proposal.
This proposal would create a framework to enable the DAO to deploy tokens towards Web2 user acquisition initiatives. This could take a number of forms, but we imagine a solid place to start would be driving users of Web2 platforms to register ENS names for their native crypto wallets.
Historically, ENS Labs has developed Web2 partnerships through its yearly budget allocation which has led to fantastic results to date! However, thinking about how ENS DAO can provide resources to both Labs and other organisations to foster these types of partnerships is a worthwhile discussion to have. Creating precedent for this kind of funding also signals to the world that ENS DAO is willing and able to fund initiatives that sit outside of the conventional Web3 space, and will encourage organisations which are experimenting with Ethereum and crypto to work alongside ENS, ensuring its position as the default identity layer for the new internet.
This sub-proposal presents the least clear path forward, however starting to set precedent around how the DAO and/or ENS Labs enter into more commercial relationships with these types of web2 organisations is something that should be explored.
Conclusion
This post and the proposals within aim to start a discussion about how ENS can experiment with unique incentives and purposeful token distribution. We’d also like to open up this thread up to all other ideas in this same spirit: different ways ENS tokens could be strategically leveraged by the DAO/ecosystem to continue to drive registrations, adoption and exposure.
Distributing responsibility and ownership of the ENS protocol is something that should be done with extreme care as to not distribute to the wrong actors or create misaligned incentives - However, it shouldn’t be something we are scared to lean into.
As a comparison to the examples above where Optimism, Uniswap and Worldcoin have distributed hundreds of millions of dollars worth of tokens to drive protocol growth, ENS looking to deploy a few thousand ENS tokens (tens or hundreds of thousands of dollars) towards strategic experiments is incredibly compelling.
Yesterday on the Meta-Gov delegate all hands I presented an outline of the thinking behind this post and my goal is to have discussion here on the forum for the coming weeks, then have any concrete next steps by the next delegate all hands call.