Notes: ENS DAO Twitter Space - Jan 19th, 2023 @ 5PM ET | Recording
Hosted by: @alisha.eth and @James
A space to discuss the draft proposal, Sell ETH into USDC.
This discussion contained a lot of information and debate that is far too much to cover here, but I will try to include significant points that stood out to me. It was a very dense and productive discussion, and I recommend listening to the full recording if you are interested in this topic.
Topics included:
- Details and intent of the endowment vs this proposal
- The best method to liquidate ETH
- Potential optics/narrative of liquidating ETH for USDC, as the Ethereum Name Service
- Merits of selling into USDC vs alternatives such as ETH or Pax Gold in the face of a potential economic recession.
- Dollar cost averaging (DCA) the ETH liquidation vs a Gnosis auction
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Noteable Q&A:
Q: Would the ETH for this proposal come from the ENS Controller wallet?
A: Yes, the first step of the proposal specifies that the ETH be transferred from the Controller wallet (controller.ens.eth). The Controller wallet contains all ETH from domain registration sales as well as premium name sales.
Q: What is the goal of the endowment in contrast with this proposal?
A: The point of the endowment is to retain unearned ETH and gradually convert everything else into USDC in order to ensure the continued successful operation of ENS.
Q: If you really believe in Ethereum, why not use Ether as money?
A: I agree with that concept, but the practical reality of trying to pay people for their needs and requirements favors using USD for price stability.
A: The ENS streaming payment is in USDC, so at a baseline, USD is needed to fund that requirement. If the working groups were to request their funding in Ether rather than USDC, the ETH request would need to be higher to account for price fluctation.
A: Many crypto operations have gone out of business in the past due year to price depreciation incurred in a bear market. Until rent can be paid in ETH, stablecoins have a use case.
Q: How do you reconcile the narrative that Ethereum is “ultra sound money” while choosing to sell ETH for USDC, as one of the biggest platforms on Ethereum?
A: ENS is a public good that has never received VC funding and is in the very fortunate position that we generate revenue in ETH. The intention is to spend that to survive. The continued survival of ENS DAO is the top priority. Article 3 of the ENS DAO constitution provides for income to be spent on the development of ENS.
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Notes
Santi (Karpatkey):
The endowment proposal will be posted tomorrow. The intention is to give the community plenty of time to discuss the proposal before going to vote.
The proposal is expected to request the equivalent of $16 million USDC across three installments.
There will be a Twitter Space to discuss the endowment proposal.