$ENS Staker Revenue Share

I am wondering if there are any thoughts or opinions on instituting a protocol fee share to $ENS stakers? I think this is a very natural step to incentivize community participation and further reward protocol participants.

It might be interesting to create a method which would only distribute rev share to those whom are staking AND active in voting/governance?

Could work out a 50/50 fee split to staker participants/DAO Treasury or
25%-staker plus additional 25% to staker + active voter (extra 25% goes as an incentive boost to participate and vote)

I think this would be an extremely rewarding system for $ENS holders and increase governance participation, voting, and discussion.


A revenue share for holders or stakers runs counter to article III of the constitution. I think that paying governance participants for their time is a very good idea, and something we should investigate - but it’d be more a case of sharing out a governance budget amongst participants than anything that depends on the registration revenue.


voting and staking can be taken at same time, we can have our platform to do this like terrasation.


Yeah in regard to income I guess I disagree with our constitution. I think we will drive more change and attract more talent to our community if we prioritize our DAO and incentivizing community participants. Unfortunately the dirty truth is that the DAO needs two things to survive; Income and participants. Looking forward to seeing more discussion around these topics if they do arise.


I think incentivizing community participants is a great way to help the DAO bring in new members and facilitate discussion, but I fear a staking mechanic could have the opposite effect for two main reasons:

  1. It may make members feel that to “fully” participate that they need to stake their ENS tokens - with gas fees so high this would be burdensome for many members.
  2. It would also put a very constant strain on the treasury to fund staking rewards - this would have the opposite effect of generating income for the DAO.

I don’t think staking or rewarding token holders with revenue from ENS operations is in line with ENS’s core ethos or constitution. Some kind of incentive for delegating your tokens could be interesting, though - particularly if it was tied to the delegate’s activity level on onchain votes.


I am against it. I would rather see ENS have to ask for donations every year like Wikipedia than run as a for-profit model. Even if that profit is just essentially dividends or staked interest. I think what you are describing is how centralization starts, because humanity always wants more and more and more…

I respectfully have to disagree with you there. I think what you are describing is the model that already exists, because the incentivization you are speaking of is “monetary gain before all else.”

Maybe if it helps, try thinking of holding ENS tokens and participating in it’s trajectory as a public good responsibility and not a means to an end. I understand that not everybody wants to contribute without a financial incentive to do so, but I would propose that maybe that is the whole point of not providing one. I hate that some of the things I say might border on sounding cultish, but having grown up along side the web… I just don’t want the future of the web to be like the current centralized web is now, that is what motivates me to be involved in this project, and to hopefully help the Web3 space resist just being an echo of the current centralization as much as possible.


I understand your concerns and I would be extremely against us turning into the facebooks or amazons of the world. I really believe there is a fine line which we can aim for which will be a mix of both worlds. The truth is, income, participation, and a devoted community is the best defense and offense in the tech world. It is in the DAO’s best interest to ensure we maintain a healthy balance between those three subjects otherwise there was really no need to create the DAO in the first place. I understand your aversions and you are 100% not alone.

Thanks for taking the time to write this response.


Could there be a way to stake the tokens and choose from one of a number of ethereum community projects or initiatives to donate our rewards to? This way we are rewarding participants but perhaps not in conflict with the spirit / constitution?

1 Like

I think we probably want to avoid becoming GitCoin. They’re better at it than we are!


I am opposed to this proposal. The main issue is the constitutional concerns already raised.

ENS seems well funded as-is to be able to support its mission. Trying to incentive increased economic impact of ENS at this time doesn’t seem wise.


Given that the security of the DAO is partly dependant on the price of the ENS token, I don’t think it is unreasonable to disincentivize selling and reward holding + participation (delegation and other metrics) with a portion of the registration fees. Also lots of selling will erode the number of delegated votes over time.

If the community is rewarded for the number of registrations then this could also be a great marketing tool and help drive name registrations.

I don’t believe this runs counter to article III as it would encourage delegation and active participation in the DAO as rewards would be based on participation, which is good for ENS. I’m not sure what the difference is between paying people a salary and giving them a percentage of fees. The percentage mechanism reduces the amount of work and thinking it would take to reward active participation.


Love your take on this. I agree with you completely.

1 Like