Reinforcement of “responsibility”

FACT:

$ENS tokens were airdropped to be claimed by holders based on three sole factors of:

  1. ownership of ENS domain.
  2. length of registration.
  3. Setting up reverse record

Pros:

  1. Equal distribution of tokens to all single-ENS owners.
  2. Easy to claim $ENS tokens (single click wether you own single domain or a 100 domain).

Cons:

  1. Unfair distribution to the holders of multiple-ENS domains, whether squatting or not. Unlike UNIswap, which took the direction of equal distribution of 400 UNI to all users, ENS users purchased products that they still own. You can’t compare apple to oranges. It is only fair that owners of more domains to be dropped more tokens.
  2. Ease of claiming of $ENS tokens and selling them on exchanges, which reinforced the narrative of “Free Money”. There were no measures taken in place to assure holding $ENS tokens by .eth holders.
  3. $ENS token was not utilized efficiently to solve some of the underlining issues of the ecosystem. I do understand this is a governance token, but the right to vote can be granted in a way it could solve some other long lasting issues like domain squatting.

Possible Solution to reinforce “responsibility":

A. Domain Registration:

Each “.eth” domain registration must lock away a percentage “x” of the total registration fee “R” in the form of $ENS token that will have a voting power equivalent to its value “L”. The rest of the registration fee “T" is deposited to the DAO treasury

R = (F+P(d)) / ETHUSD

L = x * R / ENSETH

T = (1-x) * R

where,

d: day count since the domain name is available (d = 1,2,3,4,90)

R: is the registration fee in ETH value

L: Locked amount of the registration Fee in ENS value

T: Treasury share of the registration fee in ETH value

F: is the base registration Fee in USD ($5, $160, $640)

x: Lock percent

ETHUSD: is Conversion rate of ETH from USD

ENSETH: is Conversion rate of ENS from ETH

B. Domain Cancellation by owner:

On Cancelling a domain by the choice of owner, the owner will be refunded the locked amount “L” in $ENS. The domain will then be available for registration with a premium of P(d).

C. Domain Selling:

On selling an “.eth" domain name, we have two possible directions:

  1. Selling a domain name will transfer the the locked value “L” to the knew owner.
  2. Selling a domain name will unlock and refund the amount “L” to the seller.

D. Domain Expiry:

Once the domain name expires, we have two possible directions:

  1. The owner of the domain name at the time of expiry can unlock the amount “L” to be refunded to the wallet in $ENS.
  2. The owner of the domain name at the time of expiry can NOT unlock the amount “L” and it is transfered to the DAO treasury.

Implemenation Scenarios:

A. Domain Registeration:

Assumptions

x = 30%

ETHUSD = 3265

ENSETH = 0.0083

Scenario A.1: New registration

P(d) = 0

5 letter ENS domain name

F = 5 USD

R = (5+0) / 3265 = 0.00135 ETH

L = 0.3 * 0.00153 / 0.0083 = 0.0553 ENS

T = (1-0.3) * 0.00135 = 0.000945 ETH

4 letter ENS domain name

F = 160 USD

R = (160+0) / 3265 = 0.049 ETH

L = 0.3 * 0.049 / 0.0083 = 1.77 ENS

T = (1-0.3) * 0.049 = 0.0343 ETH

3 letter ENS domain name

F = 640 USD

R = (640+0) / 3265 = 0.19 ETH

L = 0.3 * 0.19 / 0.0083 = 7.08 ENS

T = (1-0.3) * 0.19 = 0.13 ETH

Scenario A.2: Premium registration of 3 letters registration

P(0) = 100,000 USD

P(45) = 50,000 USD

P(90) = 0 USD

F = 640 USD

0 days passed

R = (640+100,000) / 3265 = 30.8 ETH

L = 0.3 * 30.8 / 0.0083 = 1114 ENS

T = (1-0.3) * 30.8 = 21.56 ETH

50 days passed

R = (640+50,000) / 3265 = 15.5 ETH

L = 0.3 *15.5 / 0.0083 = 560.6 ENS

T = (1-0.3) * 15.5 = 10.85 ETH

90 days passed

R = (640+0) / 3265 = 0.19 ETH

L = 0.3 * 0.19 / 0.0083 = 7.08 ENS

T = (1-0.3) * 0.19 = 0.13 ETH

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@brantlymillegan What do you think?

I read this a few times but I cannot grasp what this is trying to achieve still. Seems to add a lot of overhead and doesn’t really reinforce responsibility except that now it’s kinda forced in a sense. Can you please explain it with some examples and maybe try to simplify what it means to different types of people (ie: current ENS holders, swatters, delegates, new registrants, etc)