ENS Public Goods Working Group: Funding the Decentralization Research Center (DRC)

[simona_pop]

Summary

The ENS Public Goods (PG) Working Group has committed $150,000 to support the Decentralization Research Center (DRC) in 2025. With external matching funds they’ve raised separately, this equates to $300,000 in total funding dedicated to advancing decentralization advocacy and policy engagement.

Why Advocacy Matters

Decentralization has faced regulatory and political scrutiny throughout the existence of our ecosystem, and given the current alignment between Congress and the administration, the next two years will be pivotal for shaping policies that determine the future of open, permissionless systems like ENS. Historically, decentralized communities have underinvested in advocacy, while centralized entities have poured significant resources into shaping regulations to their advantage. This imbalance creates tangible risks, including:

• Regulatory uncertainty that stifles innovation and ecosystem growth
• Conflation of decentralized protocols with centralized entities, leading to misinformed policies
• Limited understanding among policymakers about the benefits of decentralization for privacy, security, and user autonomy
• A growing influence of well-funded centralized actors, which threatens the core principles of Ethereum

The DRC plays a crucial role in bridging this advocacy gap by ensuring that policymakers, regulators, and industry stakeholders have access to accurate, research-driven insights about decentralization.

Why ENS is Supporting the DRC

The DRC is a research-driven advocacy organization dedicated to educating policymakers, regulators, and other stakeholders about decentralization’s value. It was founded to combat the growing political and regulatory challenges that decentralized protocols face.

DRC’s Key Initiatives:

• Policy Engagement & Education: Hosting events, working groups, and briefings with regulators to deepen their understanding of decentralized technologies. Including their upcoming Decentralized Tech Summit in DC, which will feature key policy stakeholders in crypto and include SEC Crypto Task Force lead Commissioner Hester Peirce as the keynote.
• Research & Reports: Hosting summits at high-signal academic institutions, including Harvard, Stanford, Cornell, University of Tokyo and University of Toronto, and producing in-depth analysis on the impact of decentralization across economic, political, and technological dimensions and using them to inform and influence policy, for instance, their recent report on how policymakers should think about defining decentralization.
• Coalition-Building: Uniting projects and leading stakeholders who share an interest in incentivizing decentralization across blockchain projects to ensure decentralization remains a key consideration in regulatory discussions
• Shaping Legislative Outcomes: Actively working with lawmakers to ensure emerging regulations reflect the distinct nature of decentralized protocols versus centralized service providers. This includes recently submitting recommendations to the SEC on rulemaking that are supported by a broad range of foundations, VCs, and builders in crypto to incentivize decentralization among crypto projects.

Given ENS’s commitment to open standards, user control, and decentralized governance, this funding is a strategic investment in ensuring a policy landscape that protects the principles underpinning ENS and similar public goods.

Next Steps

The ENS PG Working Group’s contribution, combined with external matching funds, will provide the DRC with the resources to continue its critical work in the coming years. We will work with the DRC to share quarterly updates on advocacy impact, ensuring transparency and accountability in how these funds contribute to shaping a favorable regulatory environment for decentralization.

By actively supporting research-driven advocacy, ENS is taking a proactive stance in securing a future where permissionless innovation can thrive.

[DHannum8]

Amazing! Was the $150k meant to be matching non ENS related funds or any other reasoning behind that number?

Any impact on their work so far outside of the linked thread about definitions of terms?

[simona_pop]

Since I have been made aware of some concerns regarding my name appearing under the “Affiliates” section of the DRC website (not team members), I wanted to clarify my relationship (or lack thereof) with the organisation to avoid any misconceptions about conflicts of interest or active involvement.

In 2022, I was invited to be a Fellow at the DRC (at that time the DAO Research Collective, and focused exclusively on DAOs). My work in governance was the basis for the original ask by the organisation. The fellow/affiliate page is a relic of that v1 of the DRC and is on their list to be updated. The original ask framed the role as non-committal, requiring no active participation, meetings, or formal engagement. The intent, as communicated at that time, was to build a network of DAO thinkers and researchers as a signal of credibility and to loosely connect those working in the space.

At no point did I have an active role in the DRC’s operations, decision-making, governance, or funding processes. I did not contribute research, participate in working groups, receive compensation, or engage in any discussions about the organization’s trajectory beyond this initial prompt in 2022.

My name will tend to be included in many early lists - one issue with being in this space for so long is that I have “touched” a lot of projects, but this does not translate into active involvement beyond initial and presently passive association.

To reiterate: I have no conflict of interest regarding the DRC, nor do I have any financial or strategic stake in their work. My position here is strictly neutral, and my perspectives (in ENS governance and beyond) have always been and remain independent.

I hope this helps clarify any questions - I am a proponent of direct, open communication and I am happy to address any other concerns.

[simona_pop]

Decentralization Research Center (DRC) Update

Report created by The DRC for ENS Dao

March - November 2025

Over the past eight months, the Decentralization Research Center (DRC) has expanded its influence in U.S. policy circles, released new frameworks that shape how decentralization is understood and evaluated, and continued to support emerging technologies grounded in democratic governance, user empowerment, and community ownership.

With significant legislative movement on crypto and decentralized technology this year, DRC has served as a trusted resource to policymakers, researchers, and civil society leaders. Below is a summary of our key activities and accomplishments.

1. Summit: Convening Policymakers, Technologists & Researchers

April 2025 – Decentralized Tech Summit

In April, DRC hosted the third annual Decentralized Tech Summit, convening 100+ leaders across Congress, the White House, industry, and academia to address the future of decentralized technologies and the policy frameworks that will shape them. The 2025 summit emphasized blockchain decentralization, emerging policy proposals, and the intersection of decentralized systems with AI, digital identity, data cooperatives, and decentralized social media.

The event helped foster alignment around shared goals, including responsible decentralization, safeguards for consumers, and equitable access to innovation.

2. Framing the Debate: Control Criteria for Decentralization

April 2025 – “Flourishing Framework” & Control Criteria Paper

In the wake of renewed legislative interest in decentralization, DRC released a paper central to our advocacy position outlining a set of control criteria for determining when a system can be considered “sufficiently decentralized.” The paper advanced a more rigorous and principled approach to evaluating decentralization, not just as a technical feature, but as a governance, legal, and social condition.

This framework has since served as the foundation for briefings with House and Senate staff (see #6–8 below) and for coalition-building efforts to support decentralization as a measurable, incentivized policy goal.

3. Thought Leadership: Global Report on Data Cooperatives

May - October 2025 – Co-authored with Project Liberty Institute

DRC partnered with the Project Liberty Institute to release “How Can Data Co-ops Help Build a Fair Data Economy?” - a report timed with the UN’s International Year of Cooperatives. The report highlights the evolving role of cooperatives in the digital era and explores how collective ownership models can support a fairer and more democratic data economy.

The paper surveys legal models, tech architecture, and use cases from around the world, positioning data cooperatives as one path toward more user-owned and interoperable ecosystems.

4. Federal Advocacy: Responses to U.S. Treasury and Congress

July 2025 – Treasury Request for Information (RFI)

DRC submitted a detailed response to the Treasury’s RFI on illicit finance risks in DeFi and related systems. Our response emphasized the importance of distinguishing between decentralized and centralized systems, called for clarity around control and intent, and advocated for policy mechanisms that do not stifle innovation through overreach.

April 2025 – POSA-CCI Joint Staking Letter

DRC co-signed a letter with Proof of Stake Alliance (POSA), the Crypto Council for Innovation (CCI), and other stakeholders, addressing the mischaracterization of staking within proposed regulatory frameworks. We highlighted the importance of distinguishing protocol-level operations from investment contracts.

August 2025 – Developer Protections Letter to Senate

DRC joined a coalition letter urging Senate leadership to preserve developer protections in digital asset legislation, reinforcing safe harbor principles and clarifying the distinction between protocol developers and intermediaries.

October 2025 – CDFI/MDI Provision Engagement

DRC endorsed a Senate amendment calling for a study on how CDFIs/MDIs can offer digital assets via partnerships and promote financial education to combat scams - developed with Sen. Alsobrooks’ office and the National Bankers Association.

5. Legislative Engagement: House & Senate Market Structure Drafts

Summer 2025 – Control Criteria Briefings on Capitol Hill

Throughout the summer, DRC responded to key draft bills and RFIs from both the House Financial Services Committee and Senate Banking and Agriculture Committees.

House Draft: We submitted a detailed issues list and followed up with staff briefings on how our control criteria could guide future definitions in the legislation.

Senate Banking: We submitted a standalone RFI response in August, again focused on our decentralization framework.

Senate Ag: We shared concerns and constructive proposals in response to their jurisdictional draft.

These efforts helped position DRC as a go-to voice for technical clarity and implementation-ready decentralization standards.

6. Movement-Building: Coalition Letter Supporting CLARITY Act

Fall 2025 – 50+ Organizations Back Decentralization Test

DRC organized and published a joint letter, co-signed by more than 50 leading organizations, in support of the CLARITY Act’s proposed “maturity test” for decentralization. This is the largest public coalition to date backing a common definition of decentralization in federal legislation.

The letter emphasized the importance of insider restrictions and lock-ups until a network meets decentralization benchmarks and included recommendations for how such a test could drive innovation while protecting consumers.

7. Safe Harbor Engagement: Meeting with SEC

September 2025 – DRC + SEC Meeting

DRC met with SEC staff to present a “safe harbor” policy proposal that would allow early-stage blockchain projects time-limited flexibility while working toward decentralization benchmarks.

Our proposal builds on prior efforts from Commissioner Hester Peirce and incorporates our control criteria framework, aiming to create regulatory predictability without weakening consumer protections.

Looking Ahead: 2026 Priorities

In 2026, DRC will expand its impact by ensuring that federal rulemaking, not just legislation, actively incentivizes decentralization across agencies like the SEC, CFTC, Treasury, and the White House. We’ll deepen our regulatory engagement and scale technical input through a decentralization policy framework and maturity model.

To meet this moment, we must grow. Competing industry groups invest hundreds of millions annually, outpacing grassroots, values-aligned efforts. DRC will focus the next couple of quarters on securing critical funding to expand our legal and regulatory strategy, research capacity, communications, and operational infrastructure.

With additional support, we can convene more bipartisan forums, strengthen our presence in D.C., and shape the future of decentralized technologies across blockchain, AI, digital identity, and data policy.

[Limes]

@simona_pop

To meet this moment, we must grow. Competing industry groups invest hundreds of millions annually, outpacing grassroots, values-aligned efforts. DRC will focus the next couple of quarters on securing critical funding to expand our legal and regulatory strategy, research capacity, communications, and operational infrastructure.

Now, I’m not a Public Goods steward, so my opinion doesn’t matter here, but I’m personally against sending more DAO funds to lobbying groups, 150k already seemed like a lot.

Also, I checked the DRC website and ENS isn’t mentioned anywhere, yet you’re listed as an affiliate. What is the criteria for being an affiliate?

[simona_pop]

As per comment I registered above Dated March 9th regarding lack of conflict of interest here: ENS Public Goods Working Group: Funding the Decentralization Research Center (DRC) - #4 by simona_pop

Addressing your position against supporting advocacy, ENS Labs (via Alex Urbelis) was also in favour of adding ENS as a cosigner of the letter The DRC sent to representatives working on the Clarity Act. The support came after the original signatories were announced but I urge you to chat directly with Alex Urbelis on the matter.

I appreciate your “vigilance” but all these matters were addressed and again, feel free to discuss with more reputable (in your opinion, clearly) parties for further verification. We are all part of a broader ecosystem that interacts with the “real world” so ensuring that legislation passed is in line with our principles and non-retaliatory to our activities is of value. Tide/all boats etc.