Spence prepared material to increase the allowance for SPP2.
Waiting to get some input from AvsA
Executable proposal hopefully this or next week
Spence proposes to do 1 year + 3 months (doesn’t cover 2-year streams)
Netto believes it would be “operationally clean” to have the allowance of the whole SPP2 program under the next executable and set the end dates of the streams as specified on EP 6.3.
Thomas adds that the executable code generates a year’s funding plus a 6-month buffer, while the 6.3 proposal accounts for a 3-month buffer but funds the full 2 years upfront. The actual number is around $6.4 million allowance.
Netto is adamant about being strict in implementing what was approved in the 6.3 proposal, which clearly states 3 months of runway. Anything else needs to pass through a proposal again.
Netto’s proposal was discussed briefly about allowing SPs to receive a streaming grant in sUSDS, which is a yield-bearing asset that would yield at least $210k extra with 4.5% APY.
There are blockers regarding IPS from kpk, which exposes the DAO to more risks by holding sUSDS rather than USDC.
The yield from this investment would only go to the streams and not be used for other activities.
There are potential legal issues to consider.
Complexities added around operations, accounting, IPS updates, requiring a vote, risk concerns, etc.
Need to weigh the risk versus opportunity, including the cost of coordination, to determine if “the juice is worth the squeeze.”
Social proposals to create a committee for further privately evaluating this proposal, doing due diligence, etc. expected to come this week.
After that, there will be an executable proposal for the final Yes/No on the proposal.
3. Open Discussion
2.4 Tally Proposals
Clifton from Tally introduces their proposal, noting Tally didn’t receive funds from SPP2 but has been working with Nick on items like supporting Namechain and ENS integration.
The proposal aims to formalize the ENS DAO’s partnership with Tally, which has been a go-to governance platform for many on-chain boards since 2021
Scope of work overview:
Customizable Webhooks – triggers, real-time alerts, etc.
Integration – Namechain support, indexing offchain ENS names, etc.
Terms:
180k first year (split between USD and ENS tokens)
TL;DR – Tally proposes a formal enterprise-level service agreement that elevates ENS governance UX, broadens the distribution of ENS primitives across all governance users on Tally, and furnishes the DAO with battle-tested uptime, reporting, and support guarantees.
Three scopes of work: webhooks, deeper ENS integration/distribution, and enterprise support levels.
Tally’s proposal is complementary and more in-depth than Denison’s post on programmatic tooling rewards.
It was suggested that MetaGov could request funding from the DAO to pay Tally, similar to how they request funding for other needs.
The suggestion of an RFP (Request for Proposal) was brought up.
The DAO could work with Tally for a year or so, similar to the arrangement with Agora, and then potentially collaborate with other providers.
The title of the proposal may be misleading, as “dedicated governance provider” does not imply exclusivity.
Funding should follow clear DAO signals and focus on proven needs, not assumptions or features without demonstrated demand.
Proposals should be motivated, evidence-based, and distinguish genuine community needs from self-promotion, as setting the wrong precedent could invite low-signal ideas.
Hats Protocol enables onchain role management using programmable “hats” to build secure, cost-efficient DAOs and manage dynamic organizational structures.
Integration with Safe allows DAOs to control multisigs via Hats modules, automating onboarding, compliance, and signer status programmatically.
Enforceable Requirements, like ENS token holdings, can be used to automate access and removal of multisig signers, enhancing accountability and flexibility.
DAO Control is emphasized—DAOs can update multisig roles onchain, minimizing risks of stuck multisigs and allowing responsive governance.
Role Reusability across multiple multisigs simplifies transitions; a single “hat” can represent permissions across systems without managing separate addresses.
Additional Permissions through hats (e.g., forum badges, Telegram access) extend utility beyond just multisig signing, enabling trusted coordination.
Risk Mitigation includes concerns over multisig lock-in or collusion when one person holds multiple hats—Hats offers mechanisms to adjust signers.
Fractal Hat Structure allows nested roles and delegated admin control.
Future-Proofing includes immutable smart contracts, decentralized indexing, DAO governance of Hats, and potential for ENS to white-label the UI.
Ep 6:14 was the social proposal for the formation of the committee to do the due diligence on the open box proposal.
The committee is made up of 5 voting members and an observer from Labs
The 5 voting members are the 3 foundation directors and 2 appointees (Thomas and Coltron)
The committee will work closely with Josh from Intercap.
The committee will do due diligence, keep the DAO informed, and present back information.
Questions raised whether issuing a strong recommendation aligns with the DAO’s interests vs just analysis, and cautions against setting rigid precedents that may guide future investment processes.
It was clarified that due diligence should offer objective analysis and serve as an informed counterparty to OpenBox, not simply deliver a binary vote outcome.
The committee aims to maintain objectivity and transparency throughout the due diligence process.
Lighthouse Labs proposes a standard for ENS to serve as a registry for DAO metadata, enabling DAOs to control and publish key onchain data (e.g., treasury addresses, delegates), aiming to drive adoption and ENS usage.
They suggest forming an ENS-endorsed working group with industry participants to develop and propose the standard as an ENSIP, with ENS DAO potentially piloting it.
The effort builds on past, unrealized standards work; the group aims to accelerate adoption amid declining DAO coordination…
Community response is positive, with discussion on formal support via Meta-Gov, Ecosystem, Public Goods, or a DAO proposal.
A pilot would test how ENS DAO could use the spec to make delegate and organizational data onchain and queryable, enhancing transparency and setting an example for other DAOs.
A public Telegram group has been launched to develop the spec, aiming for official ENSIP status and early ENS DAO adoption, requiring collaboration with tooling platforms and DAO members.
Use the forum to communicate with the committee about anything!
Thomas and Coltron will be available for questions and will post updates on the forum.
2.3. Tally Proposal Update
The title of the proposal is being updated to “enhancing ENS governance with Tally’s enterprise support” to clarify that it is not an exclusivity agreement.
Two new work streams will be included:
Indexing offchain proposals from Snapshot.
Enhancing proposal transparency with full call data preview, action bundle export, and readable bytes 32 views.
The proposal is being changed to a social proposal requesting funding from the Metagov budget.
Payments will be milestone-based, with the Metagov reviewing performance.
Mixed views on funding Tally directly from the DAO vs. Metagov
MetaGov has the autonomy to fund governance tools like Tally using its existing mandate and budget.
Metagov has a discretionary budget for DAO tooling and governance infrastructure, and may soon need to request more funds.
Some see this as a no-brainer support, and some prefer multiple governance frontends.
2.4. New corrected proposal for L2 subnames
The corrected L2 proposal ETA is today or tomorrow
The proposal will run for seven days
Waiting on one more confirmation address from a new stream recipient
2.4. SPP2 Stream Update
All of the new streams were updated
Top up payments should be expected soon
3. Open Discussion
3.1. Lighthouse update
Last week, they pitched the DAO organizational identity at different working group meetings
There was good feedback and ideas from people
This thursday there will be first call for people interested in getting involved.
Next week will be the delegate all-hands call, and an agenda will be posted a couple of days ahead of time
3.3 Voting on technical proposals
Some feel that having participants vote on an executable is a mere formality because not many people understand the code.
Suggested the DAO give Labs autonomy to build and release technical protocol development after internal review.
Questions who is accountable if something goes wrong: the DAO voters or ENS Labs, and suggests trusting ENS Labs with protocol development if they are trusted to build it.
Some believe the current setup works well because the DAO only has a couple of protocol updates per year
DAO serves as a security for the protocol.
Potential solutions:
AI integration with governance practices
Experiment with optimistic governance on a case-by-case basis
Labs representatives (devrel) could explain smart contracts on calls, with notes distributed via newsletter and social media.
The committee sent Josh and his team a number of questions based on their own queries and submissions by DAO participants.
Currently awaiting a response to the latest questions and will be able to give a more detailed update soon.
3. Delegate Open Discussion
Token Treasury and Usage (proposal)
ENS has one of the largest treasuries owned and controlled by the DAO.
Unlike other ecosystems, ENS hasn’t used its tokens for public-facing partnerships, deals, or security mechanisms.
The DAO is now at a reasonable stance and market cap to consider distributing more responsibility and empowering communities and partnerships.
The proposal aims to explore nuanced experiments using tokens (a few hundred thousand to a few million dollars) to inspire the community and drive registrations.
The proposal will be posted on the forum in the next couple of days.
James wants feedback from delegates and contributors.
Seeking ideas for cool experiments, incentives, partnerships, or programs to run with tokens to inspire community and drive registrations.
Ideas and Suggestions
James from Lighthouse suggested the Signals protocol, where people put up ideas and lock their tokens, similar to conviction voting.
The DAO could have a prize pool of ENS tokens to distribute to community members who are the most active and participate the most.
The new register controller and ENSIP-19 update added a referral parameter to the events that will be emitted, allowing tracking and having referral fees for .eth registrations.
Ideas for incentivizing projects, such as those using onchain contracts with ENS names/subnames via ENScribe.
A test will be run for 500 days to see how it goes, and then report back.
Concerns, gamification, user alignment
ENS has two distinct communities: DAO participants and domain marketplace users, who need to be value-aligned.
James expressed concern that incentivizing can lead to gamification and grifting, attracting users for the wrong reasons.
Some people have left the ENS ecosystem because they don’t consider it a welcoming or well-incentivized ecosystem to work in.
Thomas mentioned an airdrop of 10 ENS tokens to founders in Kenya, which led to them building on ENS.
Other
Thrive protocol was mentioned, which has worked with ecosystems like Polygon, Boba, Swell, and ApeCoin DAO to incentivize community members for creating real value.
It automates the distribution of tokens for onchain and offchain tasks
Digital asset treasury companies like MicroStrategy and Sharplink are buying Bitcoin and Ethereum
1485 ETH sold at an average price of around $3.9k
ENS DAO is holding $44M in stablecoin, which is more than three years of runway based on last year’s spending
ETH Sales and TWAP
Selling ETH can be done via a Time Weighted Average Transaction (TWAP).
TWAP involves selling a little ETH daily over a period of time and converting it to stablecoins at the prevailing price, similar to dollar-cost averaging.
This approach aims to avoid price volatility.
The previous setup involved moving ETH to a safe and using a TWAP to send the proceeds to the DAO cold wallet for expenses.
This required trust among multisig holders from Karpatkey, MetaGov, and Labs.
The goal is to remove individuals from this process to improve security.
The new TWAP multisig ownership will be fully owned by the DAO, similar to the endowment.
A DAO proposal will be required to initiate a TWAP with specific parameters.
The proposal will be executed like a permissions update.
2. General DAO Updates Section
2.1. Updates from Karpatkey
2.2. OpenBox Proposal Committee Update
There is no material update regarding the Open Box proposal committee.
Engagement with Intercap is ongoing, but Josh from Intercap is very busy.
Public goods and ENS Labs
Public Goods is subsidizing research related to TLD done by ENS Labs.
Alex Urbelis from ENS Labs brought forward an opportunity to fund research on how decentralized names can interface with ICANN auctions and policy.
The research will be helpful for the general community.
It’s being conducted by Emily, who is independent and does not work for the DAO or Labs.
The grant is for Emily, and the output of her work will be for the DAO, Labs, and the broader community.
Emily has been researching ICANN and will distill information around ICANN’s preparations for the auction.
The Public Goods Working Group is funding this research because it benefits the entire decentralized ecosystem.
2.3. SPP Stream Cancelation Update
There was a glitch in the Superfluid system that caused the SPP streams to be canceled.
Netto explains that the auto wrapper contract, which transforms USDC to USDCx, failed because the relayer system from Superfluid didn’t work, causing the DAO wallet to run out of funds.
Superfluid will refund the liquidation fees, and a new DAO proposal will be needed to reactivate the streams from the DAO wallet to the stream pod.
Implications and Next Steps
Concerns are raised about relying on a free, mission-critical service without an SLA or agreement.
The recipients will need true-up payments, potentially costing around $250,000, before the streams can be restarted.
Marcus suggests writing a single sentence explaining the fail point and the next step, which is restarting the streams through a DAO vote.
Stream Failure Cause and Measures
The cost of the stream failure was around $3,000 in liquidation fees.
Superfluid is covering the liquidation fees and ensuring the systems that trigger the auto wrapper are up.
They are also updating the UI due to a bug discovered.
Superfluid is acting proactively, even though they are not obligated to fix it since ENS isn’t a paying customer.
Suggestion to ask Superfluid for a post-mortem and offer financial recompense for their service, requesting an SLA in the process.
Could run own infrastructure to ping contracts for reliability.
3. Open Discussion
DAO Organizational Identity Specification
Lighthouse petitioned MetaGov to subsidize their mission, which fits into DAO tooling and supports all DAOs, including ENS.
ENS will subsidize Lighthouse to offset costs and ensure they can continue their mission.
ENS wants public commitment that this is an officially sanctioned thing that ENS wants.
Uniswap announced that they are registering a DUNA, a real-world legal entity governed by a DAO.
This could make things more mainstream.
Project where DAOs can upload data publicly to ENS could be important from a regulatory standpoint.
ENS Legal Structure
The question is raised whether the current Cayman foundation structure is optimal for maximizing participation, innovation, and proposal quality, especially with ICANN’s next round approaching.
The Cayman structure offers tax efficiency and low operational overhead, but might deter US entities from engaging in innovative proposals.
A MetaGov-sponsored research into this could be a good idea.
A DUNA offers explicit limited liability for token holders and trustees, whereas the Cayman foundation model lacks legal precedent and may expose trustees (and potentially voters) to risk.
Some businesses may hesitate to partner with ENS due to the Cayman foundation’s regulatory gray area.
DUNA is legally designed to recognize DAOs, while the current foundation is a general-purpose wrapper without DAO-specific legal clarity.
Transitioning to a DUNA is expensive (Nouns spent ~$1M) and would require significant legal work; ENS already has a functioning foundation.
Need more clarity – Delegates lack a clear understanding of their liability, and the Meta-Governance WG may commission a report to evaluate whether a DUNA would be a better fit.
KPK is at 143 million (down from 148 million due to price decrease).
Portfolio: 26% in stablecoins, 73-74% in Ethereum.
Total result around 6.05 million, yield result almost 100k, net yield result almost 77k.
APR increased due to stablecoin allocation and sky saving state at 4.75%.
BTC finished down around 1.5% at 117k last week.
ETH finished up 5% last week.
Stripe and Circle announced layer one chains (Tempo and Arc).
Ronin transitioning to L2.
Record ETH ETF inflows around 3Blast week.
Sold an additional 500 ETH last week at around 4.7k, totaling 3.6k ETH sold at almost 4k per ETH (14.3M in stablecoins).
Holding 46 million in stablecoins (highest in a long time).
2. SPP Update - Blockful
Incentives to increase delegation.
Active voting supply of $56M.
Need to increase that because the math is basically if you have your cost of capture above your drainable trajectory, you need to have like this cost above this to have basic safety.
Increase Active Delegated Supply: The goal is to increase the active delegated supply to increase the cost of capture.
Moving towards an incentive system based on proposals to bring rewards to delegators who delegate to active delegates.
Token holders get an incentive APY to delegate, but only if their delegates are voting.
DAO resiliency efforts – The aim is to make the DAO more resilient.
A system is being developed to allocate rewards based on how much delegates are voting, their voting power, and how long their delegators have been delegating.
A basic service provider tracker is being added to keep up with reports and dates for service providers.
Concerns around incentivizing large delegates to accrue more tokens, farming APY, etc.
3. Stream Update
The SPP stream reactivations will be live this week and put on chain to vote.
A written postmortem from the Superfluid team will be available in the forum alongside the executable proposal.
4. SPP Watcher
Sentiment + Statements Captured
The topic of keeping track of service provider reports and KPIs has been discussed in Metagov calls.
Hesitancy Around Accountability - There’s a general DAO problem of behind-the-scenes conversations and fear of disagreeing with the majority.
People are sometimes told to stop contributing on the forum.
Transparency is a core value that should be upheld.
The DAO should treat service providers as a business relationship, without personal aspects influencing accountability.
Conflict resolution is lacking in the DAO.
Service providers MUST be accountable for their work and results!
Some feel that ENS DAO is not a very welcoming place to work.
Forum Moderation and Censorship - Spike’s post was recently deleted on the forum, which he thinks was completely uncalled for.
He questions who “community” is and if it’s just one person censoring posts.
The forum is run by ENS Labs, not the DAO, and suggests moving the forum to the DAO and electing new moderators.
He believes the DAO should be able to express opinions freely without fear of censorship, within reasonable guidelines.
Goal is to ensure service providers can demonstrate their work, avoiding arguments in forums.
First service provider program lacked formal KPIs and quarterly reports.
Discussions on accountability decreased after the service provider program vote.
Isues are discussed privately due to reluctance to post publicly.
Concerns about conflict of interest with stewards working for ENS Labs.
A mention of constant politics and actively campaigning against some Service Providers took place.
Some discussions are unproductive due to their personal tone.
Moderation is considered inadequate and not equal.
It’s been said that there needs to be someone willing to say how things truly are so that others can share their opinions freely.
accessor.eth has been muted for a year on the forum and has not received a response regarding why.
