[EP 6.32][Executable] Transfer $2.5M USDC from Endowment to wallet.ensdao.eth

netto.eth · February 7, 2026, 2:07am

Abstract

Following the approval of the [Executable] Collective Working Group Funding Request (Oct 2025), the transactions included in that proposal cannot fully execute due to insufficient USDC in the ENS DAO timelock (wallet.ensdao.eth).

This proposal enables a one-time internal transfer of 2.5M USDC from the ENS Endowment to the ENS DAO timelock (wallet.ensdao.eth) to ensure execution of already approved governance decisions. It is an operational treasury action designed to maintain execution continuity without requiring ETH sales under current market conditions.

Motivation

The Working Group funding proposal was submitted on January 22, 2026, and its execution tests were performed against the block in which it was created (block 24293146). At that time, sufficient USDC was available.

On January 25, 2026, Superfluid wrapped approximately 616K USDC using the AutoWrap functionality to fund SPP streams. When the proposal became ready for execution, it required 959K USDC, while the timelock held approximately 505K USDC.

As a result, the approved proposal cannot execute as intended. This creates immediate operational risk, including:

SPP streams running out of funds and triggering liquidation on Superfluid
Labs and service providers being unable to claim approved streams
Failure of otherwise valid proposals due to insufficient timelock balance
Increased dependence on additional governance cycles for routine treasury operations

Historically, the DAO has sold ETH to meet USDC-denominated obligations. However, given current market conditions, selling ETH to cover this shortfall is suboptimal. The ENS Endowment holds sufficient USDC reserves to cover near-term obligations. An internal transfer avoids unnecessary market impact and preserves overall treasury flexibility.

This action enables execution of previously approved governance decisions, maintains operational continuity, and provides the Meta-Governance Working Group time to develop improved processes to prevent similar situations in the future. No new budget or funding program is created by this proposal.

Specification

Transfer 2,500,000 USDC from the ENS Endowment Safe to wallet.ensdao.eth (Timelock).

Addresses

wallet.ensdao.eth (Timelock): 0xFe89cc7aBB2C4183683ab71653C4cdc9B02D44b7
ENS Endowment Safe: 0x4F2083f5fBede34C2714aFfb3105539775f7FE64

Acknowledgements: thanks to @Coltron.eth and kpk’s team for the readiness and support to solve this together.

blockful · February 7, 2026, 2:14am

Draft proposal calldata security review

The calldata draft executes successfully and achieves the expected outcome of the proposal. All simulations and tests are available here.

To verify locally:

Clone: git clone https://github.com/blockful/dao-proposals.git
Checkout: git checkout 1a6f269
Run: forge test --match-path "src/ens/proposals/ep-transfer-2.5m-usdc-draft/*" -vv

Note: Draft here, to be posted by Coltron

Coltron.eth · February 7, 2026, 2:50pm

This has been posted to Tally.

blockful · February 7, 2026, 8:52pm

Live proposal calldata security verification

Calldata executed the expected outcome. The simulation and tests of the live proposal can be found here.

To verify locally:

Clone: git clone https://github.com/blockful/dao-proposals.git
Checkout: git checkout 4026f06
Run: forge test --match-path "src/ens/proposals/ep-6-32/*" -vv

clowes.eth · February 9, 2026, 1:03pm

We clearly need to fund operational expenses, and this is fine as a short term solution but I don’t think we should be dipping into Endowment funds unnecessarily to pay day to day expenses. Nor do I think we should be speculating on cryptocurrency markets.

Voting in favour, but whats the plan for reconciliation and the future? Ideally that would have been outlined in advance.

5pence.eth · February 11, 2026, 6:25am

I think the right approach would be to use the TWAP Safe that we used last year, but with a slightly different security mechanism. Instead of three complex signers, we should use a Zodiac module with only permissions to TWAP and send to the cold wallet.

The registrar could sweep to the safe, stewards could monitor a TWAP, and the only egress would be USDC to the cold wallet.

With ETH coming in and USDC going out, this just needs to be a continual time weighted process.