[Temp Check] Expanding the ENS Foundation Board to Strengthen Operational Accountability for ENS DAO

Previously, I shared my stance that trading upfront authority for operational efficiency is a reasonable trade-off if this proposal resolves political and governance overhead.

Several points surfaced in this thread telegraph the opposite.

  1. Sequencing — as @James and several other participants have noted, proposing a structural overhaul before the research completes — and before the community has had a chance to deliberate on its outputs — is a defacto parallel track, regardless of intent.
  2. Accountability structure — Two of five seats are held by representatives of the primary funding recipient. If the Board is meant to hold funded entities accountable, but those entities are embedded in the Board itself, who holds the Board accountable?
  3. The independence assumption — there is precedent in ENS DAO’s governance history for token holders to elect Foundation directors directly. Delegating the nominee search to current board directors undermines the very independence the proposal relies on — especially given that precedent has already established the DAO as the legitimate appointing body.
  4. Working Group dissolution — I am in favor of consolidating Working Groups for operational efficiency, but with nuance. ENS needs a way to interface with the public, independent of board structure. The BoD allocates for ecosystem initiatives — that allocation should explicitly support a continued public-facing function, not absorb it into board operations entirely.

The ENS DAO commissioned a $125k research retrospective specifically to inform structural improvements. Not all may be in favor of this — but stakeholders should respect the process and allow MetaGov to finish their job before any structural proposal moves forward.

May I turn readers’ attention to @mikemetagov’s ENS Retro Modification to Support Co-Created Reforms, which proposes a bridge between the retrospective and the next iteration of ENS DAO governance in the form of a representative advisory body responsible for developing and submitting recommended reforms to the DAO for a vote.

If the proposal to expand the ENS Foundation Board is genuinely meant to be a structural answer to the retrospective’s findings rather than a parallel track, then its advocates should actively engage with the process — good faith demands it.

One last thing:

Under Article 16(b) of The ENS Foundation’s Articles of Association, a director’s resignation is effected by “notice to the Foundation Company” and takes effect immediately unless the notice states otherwise.

avsa.eth has publicly stated his intention to vacate his board seat. Has formal notice of resignation been delivered to The ENS Foundation in accordance with Article 16(b)? If not, what is the process and appropriate venue for such notice to be submitted so that the resignation is formally recognized?

This feels a lot like yet another proposal to shuffle same people around without making any meaningful changes,

to this very day I still don’t understand what is stopping ENS DAO from doing the easiest simplest thing which is clearly adopted all over DAOs, every single successful DAO does that - open the gates for delegates properly, build a portal for them, incentive system, build a system to make a meaningful allocation of tokens to them, so that they will have real voting power, or for example implement quadratic voting to equalize voting power around to an extend

with a meaningful effective robust delegate body, they will generate ideas, they will generate political pressure to actually execute meaningful initiative, they will pressure executive bodies for accountability, force out inefficient executive agents and elect genuinely useful ones etc etc etc

this would be a very real equivalent of Adam smith invisible hand but in the form of governance - governance invisible hand, whereby nobody is in charge directly, but collectively they will force decision making in such a way so that it would benefit all the stake holders of the protocol including developers in all forms and sizes, users, and so on

This can be executed in many ways, gradual roll out, additional distribution of tokens in some form, maybe just slowly force the pitch in that direction open the gates with severe restrictions and lets only the best of the best in gradually, many many different options, but at this stage this is not important because I don’t see the political will to do this

There has to be a political will to do this, people have to say “Yes we want diverse and efficient body of delegate for the long term good of the protocol” - then once we have the YES, we can figure out how to do it

Otherwise ENS DAO is stuck in this endless loop of politics - one hand washes the other, grease the cogs in the right direction and you get what you want, people are afraid to speak up because they won’t get the votes etc - all of this very bad for the protocol, its killing the dynamics, its killing the atmosphere, it just inhibits success and growth. All is well, except it cannot last long, I keep seeing in my mind that interview with Facebook guys, where they clearly said, that if it wasn’t for myspace screw up, there would be no Facebook, the only reason Facebook exists is because myspace screwed up, otherwise we would have myspace as our social network ruler not Facebook. At this point ENS is getting like seriously close to becoming myspace of decentralized naming, there are way many people who are competing at this stage for the very same pie Unstoppable Domains, Freename, Solana Name Service, TON DNS Telegram Usernames, Tezos Domains, Handshake, Namecoin and so on. You can argue back and forth till you are blue that there are scam, they are not real, that they don’t have traction and what not, but guess what - they do exists. Decentralized naming is the pie, the ultimate pie if you will, and a lot of visionaries out there want piece of that pie, and given current trajectory of ENS DAO - they WILL get it

So why don’t we drop all those pleasantries, start calling things for what they really are, and implement some meaningful changes, which will place ENS on a firm trajectory to success

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Thanks to everyone who read this and are engaging in good faith. Figured it would be easier to address a number of things here/ clarify things here in one post.

On the board makeup: Three independent external directors outnumber two Labs seats, no matter how you cut it. Labs cannot be outvoted by itself. This is the explicit design of this proposal, and designed with this in mind. The concern that this creates a “Labs-centric” body does not hold up mathematically, and I’d ask those raising it to engage with the structure as written rather than the structure as feared.

On sequencing (given retro happening right now): This temp check is a response to what the retro has already found. Phase 1 findings are public and confirm the exact problems this proposal names: accountability gaps, coordination failures, delegate fatigue. We are now in Phase 3 and whatever the next phase calls for, I will be engaging with in good faith while also advocating for a design and direction that I believe is the right course for us to try.

On decentralization: Some responses in this thread invoke decentralization in ways that conflate two very different things: decentralization of the protocol versus decentralization of operational decision-making. These are not the same thing, and conflating them is how this conversation ends up going in circles. Treating operational efficiency as a threat to decentralization misreads what decentralization is actually protecting. If we are serious about ENS succeeding (and perhaps we all have slightly different interpretations of success- mine is broader adoption of ENS names and useful integrations) we have to be willing to make that distinction and stop using one as a shield for the other. The ENS protocol is already decentralized where it matters most- the DAO owns the smart contracts, and no single party can make any changes on the protocol level without putting forth a vote. The temp check does not change that.

Last note: Founder-led companies and founding team representation on boards is normal and necessary. If we agree the problems are real and the direction is right, then let’s focus on getting the design details right in the formal proposal rather than relitigating first principles of basic corporate governance.

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decentralization of the protocol is a very broad term which refers to everything anything and nothing, very abstract thing

decentralizing operational decision-making would make things very slow and efficient

but

decentralizing authority is a very real thing, which would drive things forward immensely, your proposal does nothing towards decentralization of authority, if DAO would implement this, that is just shuffling same people around, we literary need 100 more voices - that is 100 more delegates with real voting power power, who would be thoughtful engaged and have real authority, then things will start moving in the right direction

your proposal does absolutely nothing, even if we replace all directors, then its same people all over again - 5 seats - 2 ENS LABS (which is same people) + 3 independent directors, but same people who are in power now will bid for those, that is large delegates, current stewards and influencers, in between those 3 groups, it is pretty much guaranteed that those 3 seats will be occupied by the very same people who are in charge now

how is your proposal changes anything at all? It doesn’t matter how you call bad governance which leads to stagnation - call it “rebranded reformed ens foundation board” - same thing, its still bad governance leading to stagnation because same people will be in charge, DAO needs several orders of magnitude more people in the position of authority, then it would be genuinely impossible to play that nasty politics happening now

EDIT: At the moment ENS LABs not formally, but in a very real sense exerts power via controlled delegates and broad informal influence, political lobby of ENS LABs is so strong right now, that any proposal brought forward by ENS LABs would be accepted pretty much automatically anyway, by bringing 2 people from ENS labs to foundation board, you only strengthen that influence. If anything should be done, is that influence of any single party within current political landscape should be diluted and diminished via introduction of new agents of influence.

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I agree with @katherine.eth ‘s distinction that decentralization of the protocol and decentralization of operational decision-making are not the same thing.

But the first-order governance question is still the ownership layer, not the executive layer. ENS can tolerate a fairly concentrated execution structure if it is being supervised by a strong, independent, and diversified delegate body. Without that, changes to the executive layer will keep looking like second-order redesigns on top of a weak foundation.

This is also why I agree with @SpikeWatanabe.eth ‘s broader point. ENS keeps revisiting top-level structural changes, while the more fundamental problem remains underdeveloped delegate market formation. Delegate Incentives Program matters here not just as a security measure, but as governance infrastructure for building a real and competitive delegate body.

So my concern is less about whether this exact board design is acceptable in the abstract, and more about sequencing. If ENS does not seriously strengthen the delegate layer first, then new executive structures are likely to remain fragile, contested, and less reliable than they appear on paper, especially while more than 90% of circulating ENS remains inactive in governance.

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The Metagov research team wanted to provide its understanding of this proposal/discussion per the evidence collected. We are not supporting any stance or proposal over another, we are here to provide evidence driven contextualization.

ENS is clearly at an inflection point. This thread and the Retro both surface a governance system under strain: delegates are overloaded with too many operational proposals, the DAO spends scarce voting attention on small questions instead of truly strategic ones, and there is no clear accountability layer between tokenholders and funded entities like Labs, service providers, and public goods initiatives. This is compounded by slow, inconsistent cross–working-group coordination, which blocks contributors and leaves the governance layer feeling slow, under‑specified, and misaligned with ENS’s role as core Ethereum infrastructure. At the same time, any attempt to fix this by moving budget authority into the ENS Foundation risks new legitimacy and conflict‑of‑interest concerns if the oversight body is not credibly independent from Labs.

A core tension underneath all of this is the difference between decentralizing decision‑making and decentralizing control over the protocol itself. On one side, ENS wants broad, permissionless participation in governance: many delegates, open working groups, community‑driven proposals, and public deliberation. On the other, it must preserve decentralization at the protocol layer: no single entity should be able to unilaterally change contracts, seize names, or capture the treasury, and the system must remain credibly neutral. Moving some operational authority into a smaller body like an expanded Foundation board would centralize decision‑making in one dimension, but if designed correctly it can actually protect protocol‑level decentralization by letting tokenholders retain sole authority over core protocol changes, constitutional amendments, and high‑level treasury moves, while a focused body handles noisy recurring operational questions that are currently burning out delegates. If the recommended Accountability and Transparency infrastructure are adopted this structure provides new levels of access for the entire ecosystem to assess the performance of the Foundation board which effectively empowers token holders like never before, perhaps the critical enabler of decentralization. (Side note…there is a field in governance management that looks at mimicry scenarios where organizational forms seem optimized for decentralization, or some other principle/purpose, but it never happens because the form is confused with the function (ie “if we just adopt the same org chart we will get the same result). The org chart does not matter as much as the function and without empowering token holders with data (capability) the ability to vote with the new knowledge (opportunity) and the understanding that their voice matters (motivation) then the decentralization function never materializes no matter what the org chart looks like.)

The preliminary recommendations coming out of the retro take a staged, infrastructure‑first approach rather than immediate structural surgery. They propose: (1) a 12‑month ENS Governance Masterplan with clear objectives, KPIs for each WG and for Labs, and a COI policy, to replace implicit expectations and ad‑hoc roles; (2) transparency and documentation infrastructure—standard templates, a shared governance data repository, and aligned quarterly reporting—so budgets, decisions, and outcomes are traceable instead of being held in people’s heads; (3) a delegate accountability baseline with expectations, participation and rationale metrics, COI disclosures, dashboards, and re‑delegation nudges, to make representation legible and reduce “ghost” or ossified delegation; (4) treasury oversight improvements via review clauses for large allocations and spend‑to‑outcomes reviews tied to the Masterplan; and (5) a graduated sanctions framework so repeated non‑compliance with reporting, participation, or COI norms leads to predictable, proportionate consequences instead of personality‑driven conflict.

If ENS were to adopt an expanded Foundation board as proposed, these recommendations effectively become the operating system that board runs on, and they are also the main safeguards against unhealthy centralization. The Masterplan and KPIs define the board’s mandate and evaluation frame, so it is judging Labs, service providers, and any successor to WGs against DAO‑ratified objectives rather than improvising priorities. The transparency and documentation stack becomes the board’s information substrate, ensuring that any concentration of operational authority is surrounded by radically open information: standardized reports, a shared repository, and clear links between spending and outcomes that tokenholders and delegates can audit and contest. Delegate accountability measures shape the interface between the DAO and the board, so the people who appoint and, if necessary, remove directors are themselves visible and accountable rather than “black boxes” of voting power.

Treasury oversight tools provide a review calendar and practice that an expanded board can internalize—structured reviews and conditional renewals instead of blunt, all‑or‑nothing funding decisions—while the graduated sanctions ladder gives the board proportional tools to adjust expectations and funding over time. Rather than decentralization expressing itself only through occasional high‑stakes “yes/no” votes or social pressure, it is embedded in these predictable processes: every large allocation has review conditions, every recurring failure has pre‑agreed consequences, and any board operating in this environment is constrained by publicly known rules.

In that sense, the retro’s recommendations and the Foundation‑board proposal are complementary. The recommendations build the data, rules, and feedback loops necessary for any accountability‑focused mid‑layer to function credibly and to centralize some operational work without undermining protocol‑level decentralization. The board proposal is one concrete structural instantiation of that mid‑layer. The remaining design questions—what exactly gets delegated to the board vs reserved for the DAO, how independent the board must be from Labs, and how to transition away from the current WG model without losing decentralization or contributor pathways—are easier to answer, and safer to implement, if ENS first adopts this governance infrastructure and then layers structural reforms on top of it.

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I have to say that I agree to this in the context of what @mikemetagov just mentioned.

We can’t suddenly delete WGs and change the structure radically, but we can’t keep the current affairs as it is, as it has proved again and again that it only create silos and stagnation.

I think, the steps are more or less clear:

  1. MetaGov finishes their research.
  2. Election should happen as usual (we would still need a transition period, even if it’s 6 months, otherwise informing everyone of the new POCs, etc will be a mess among other logistics that are obvious)
  3. 2027 when the new term of stewards would happen, the foundation board can take place, with a clean 6 month transition from WGs to Foundation, enough time to spread the word and in the process of making it, understand its flaws and weak points ahead of time and with a current body of stewards present to tackle a delay in the implementation.

The other aspect that I feel we are missing: this forum is a bubble, and we assume that because the same 15 people reply to the forum posts we have a real sense making of the stake holders opinion. And I honestly, don’t think half of the delegates will have enough contexts not only for the foundation board vote but for all the other efforts towards improvement that are currently happening.

So I beg y’all, (I can help) that if we want to move forward, we will need to start now preparing delegates, informing them actively, and have a CLEAR plan of action with dates that we can commit. Because at some point, there are so many posts that this rather being a clean re-start can become really fast into a chaotic “I don’t know/want to vote/participate” kind of situation for delegates.

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Agree with @mikemetagov that the recommendations and an expanded Foundation board are complementary, not competing.

Re @vegayp: I hear you, but a 2027 implementation date is not a reasonable answer to problems that we are all aware of and that are documented and live right now. The current working group structure is not functioning- coordination is breaking down in practice (hence everything that is on the table in this DAO right now), funding is falling through the cracks, and contributors are being left waiting on decisions that have a clear home under no one.

As mentioned, I am committed to engaging with Phase 3 of the retro in good faith, and I also think the best thing I can do right now is keep this proposal moving forward. There does seem to be broad directional support for this, so the question is whether we keep finding reasons to wait (which imo benefits no one).

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Replying here too after posting ENS DAO reform. The first thing I want to highlight is that @katherine.eth’s replies in this topic have almost all been further explanations and justifications rather than trying to address concerns and make amendments.

Understanding the makeup of 3/5 of the seats is vital to discussing the merits of the proposal. I’d argue that the makeup of the board is the single most important factor here, and we have not been given any context beyond: (as well as some generic VC lines)

Either there’s an idea of the type of people/organisations that could fill this role (which would make sense to share/discuss) or you already have names and they’re not being shared until this post becomes a ‘formal proposal’ (which seems confusing as part of this process).

The fact that the existing ENS Foundation (that is entirely Labs aligned) is responsible for the director selection process and creating the candidate slate without DAO input or visibility (when this foundation will be responsible for funding Labs) is clearly a conflict of interest.

Will only the existing ENS foundation members and ENS Labs have the ability to propose or select candidates?

There are so many ways to make this process more open and inclusive rather than the existing members of the ENS Foundation expanding their own foundation to take over the DAO’s ability to decide on Labs’ funding. A few ideas off the top of my head: (in addition to the various ideas myself and others have proposed and have been ignored)

  • Allow the DAO/wider Ethereum community to participate in the selection process for potential directors through a self/community nomination structure.
  • Allow one seat to be community voted.
  • Give further breakdown as to who is even in the running for these seats. Currently anyone with “Financial and business acumen, a protocol or ecosystem leader or anyone with nonprofit/foundation experience”
    • These are just too high level to understand who we’re actually talking about here and how connected they are to ENS Labs.
  • 10,000 other ideas that would increase the legitimacy of this process, rather than “This is how corporate America works, this is the best path forward.”

This is the key section I’m referring to. This was posted ~3 weeks ago and after dozens of replies trying to understand more about this process and who these 3 independent directors could be, we as the ‘non-foundation-connected’ contributors still aren’t any closer to understanding who they could be, or how their selection will remain neutral.

This matters because of the unilateral power this foundation will have in distributing ENS Labs’ budget. While I support the idea of empowering the ENS Foundation, it shouldn’t be led and controlled by a foundation already completely intertwined with Labs.

For clarity, does; ‘and will publish the full candidate slate in the formal proposal for community review prior to ratification’ mean that there will be an opportunity for DAO contributors to have input on the candidate slate prior to the proposal being formally submitted? This would be at least a step in the right direction.

Given the justifying tone of your replies in this thread and in ENS DAO Reform Next Steps, it seems clear that there’s no interest in taking on feedback or criticism from the wider DAO, and that we should expect a formal proposal outlining an entirely Labs-decided Foundation, to oversee Labs’ budget for the foreseeable future.

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so far

estmcmxci - supportive - commenting
AvsA - supportive - short comment
Leuts.eth - supportive - short comment
liubenben - supportive - short comment
Sov - supportive - short comment

simona_pop - neutral - debating
mikemetagov - neutral commenting
vegayp - neutral commenting

James - debating - extensive complex reasoning
clowes.eth - debating - extensive complex reasoning
Premm.eth - debating - extensive complex reasoning
Arnold - debating - extensive complex reasoning

Spikewatanabe - critical - extensive complex reasoning
bcvfinance.eth - debating - critical - extensive complex reasoning

total participating: 14

total supporting: 5

total neutral: 3

total debating or critical: 6

Conservatively there are at least 40-50 agents of influence around ENS ecosystem, that is some of the top delegates, stewards, ENS labs members, some active community members, service providers, so total participation is less than 20% out of which maybe half of people are somewhat supportive

For such a significant organizational change to call this discussion as supportive is stretch at best

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To answer your direct concern: the candidate slate for the final board will be published in the formal proposal. The community will have a chance to ratify or reject that slate.

Like I said, my position on board composition hasn’t changed (5 instead of 7 or 9 members) and I’ve addressed it further in this thread as well. If your issue is with basic principles of corporate governance and and a misreading of what constitutes a conflict of interest, I’d ask that we let the directional question move forward rather than continuing to relitigate the same point.

As for the who, I made it very clear in the proposal that the candidate search will only begin pending reception to this initial idea. There are no names at this time because that is not how this process works.

BTW- I’ve thought more about the ‘conflicts’ issue here and have done more research here (ie norms in the non-profit governance world). Executive directors of non-profits routinely recuse from votes on their own organization’s budget specifically because the org’s funding affects them. For example, Wikimedia Foundation and Mozilla Foundation both have formal + publicly documented conflict of interest policies with explicit recusal requirements for exactly these situations, both of which can used to model the recusal protocols on in the formal proposal. This means that there is precedent for these cases we can look to, and the existence of a conflict doesn’t mean the solution is exclusion or to add more cooks in the kitchen.

Again, this is in the intentional design in the board composition: 3 independent seats to 2 Labs seats means ENS Labs cannot unilaterally control any outcome, and recusal still means that the carve out cases can get handled.

To confirm; This is implying the community/DAO will only be able to ratify or reject a list of 3 new independent directors? When you say “Candidate slate” is the implication that this slate will be a list of potential directors? Or just the three that have been selected?

If the latter, this means the the community/DAO won’t have any ability to vote/decide on who these directors are? Again this is ‘ENS Labs will select foundation directors’ and then the DAO has the option to approve or reject the proposal? What if the DAO/community support the idea of empowering the foundation and agree with the proposal, but want some visibility into who these ‘independent’ directors would be prior to the final approval? We reject the proposal and start again? Why not just discuss these things in public.

Good to see some level of reflection here, this section reads like you’re implying ENS Labs employees would/could recuse themselves from any vote about the ENS Labs budget? But again, without understanding who these independent directors are, or their attachment to ENS Labs, its very difficult to tell if this actually changes the dynamics.

Even the idea of these directors being approached / hired by ENS Labs personnel (as proposed) as opposed to the DAO creates dynamics around who these new directors answer to.

IMO based on the conversation thus far, these are the open questions that need more clarity.

  1. Will the Foundation formally address all points from MetaGov’s specific findings, or is it just directional?
  2. Several community members have stated concerns about the composition, (I agree w/ you that boards are good)
    (a) Structurally can you share reasons for a composition of 5 directors and why other form factors (of 7, or or 9) are being rejected? Especially given lack of community representation.
  3. How can the DAO have ongoing community representation (within or adjacent to the board)?
  4. Many members have advocated for an incremental adoption, is this not a viable path forward in your opinion?
  5. Acknowledging in advance that job descriptions are a lot of work. Could you outline (directionally) what the director’s roles & responsibilities might look like? Right now there is too much ambiguity.

ENS is a DAO, yet under this proposal in this current form there is no provided plan for how its broad constituents can have impact in this new regime.


Statements made by various members that formed the above opinion:

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I’m not really implying anything, more so just stating them. As mentioned in the post, I will work with the existing board (which is DAO elected) to search for the independent seats. The formal proposal will contain proposed names for those seats and everyone can then take a look at those names and credentials and vote on the proposal based on the merits of those people. This is very common board practice even outside of our industry. @estmcmxci also had similar questions as you which I answered earlier in this thread:

Also: the fact that the existing board leads the candidate search does not mean the resulting board members answer to them. That conflates the hiring process with the governance structure. If sourcing created loyalty that overrode independent judgment, founders would never be fired by their own boards. But we know that happens, and happens precisely because board members are expected to act independently of whoever brought them in. Apple and Uber are two obvious examples. The independence of a board member is a function of the structure and incentives they operate within, not of who found them.

1. Will the Foundation formally address all points from MetaGov’s specific findings, or is it just directional?

This proposal does not claim to resolve every structural challenge the DAO faces, and I said as much in the original post. Problems like delegate ossification exist at a different layer and are not solved by an accountability structure at the operational level. What this proposal does address directly are the problems Phase 1 findings already confirmed: accountability gaps, coordination failures, and delegate fatigue at the operational layer.

2. Board size/ Composition:

Smaller boards are faster, cleaner to manage, and less prone to deadlock, especially in this situation where we are trying something structurally new. Boards can and do expand over time as complexity grows (ie board for public companies are larger than say, board sizes for Series A companies and beyond- board sizes generally grow with each subsequent funding round), but starting with a larger body introduces coordination overhead that works against the exact problem this proposal is trying to solve.

  1. How can the DAO have ongoing community representation (within or adjacent to the board)?

The board itself is the accountability layer that answers to tokenholders, which is how shareholders are represented in public companies. Board members in public companies are accountable to shareholders and face consequences for failing to act in their interest and its not different here. The DAO ratifies the budget, ratifies board seats, and retains removal authority.

  1. Incremental adoption:

What would incremental look like in practice from your perspective? The only concrete one that’s been has been floated so far is pushing implementation to 2027, which I don’t think is a serious answer to problems that are documented and live right now. I also don’t think introducing a board layer is that drastic as I’m still supportive of programs like SPP and have a carve out for that and any other standing commitments we have made historically.

  1. Board responsibility:

This is a board, and it functions like one. Boards meet roughly quarterly for substantive working sessions covering budget allocation, performance review of funded entities, and strategic decisions within their mandate. They can be called into emergency sessions when urgent decisions arise. I’m not trying to reinvent the wheel here or overcomplicate things- this is standard board governance, not a new or untested model. However, I also recognize that this board carries more operational surface area than a typical corporate board, and for that reason I think having roughly two full-time support roles to help the board actually execute well makes sense.

From the perspective of the Retro Research team, what @katherine.eth says above regarding point #1 is accurate and supported by the evidence:

”Will the Foundation formally address all points from MetaGov’s specific findings, or is it just directional?

This proposal does not claim to resolve every structural challenge the DAO faces, and I said as much in the original post. Problems like delegate ossification exist at a different layer and are not solved by an accountability structure at the operational level. What this proposal does address directly are the problems Phase 1 findings already confirmed: accountability gaps, coordination failures, and delegate fatigue at the operational layer.”

The proposal for a newly configured Foundation Board does not address the root causes, drivers or enabling conditions for the challenges addressed by the Retro Research. These challenges require a longer-term road map and sustained investment in building the accountability, transparency and capital allocation infrastructure necessary for sustained performance and the ability to respond to external factors (technological landscape, market conditions, regulatory environment, etc.). Structural reform is necessary but not comprehensive and possibly even wasteful if other problem drivers are not also addressed. But we take the level of support for the proposed Foundation Board as a proxy measure for the increasing recognition of these challenges, the need for solutions and the value of the proposal itself in being part of the solution.

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Solving “every structural challenge” is unrealistic, which is why I feel its important to have a wholistic strategy and broad consensus before such a radical structural change.

I understand small boards are more efficient. However the heart of the question was really about stakeholder breadth. Going to park this as it feels circular.

What’s the proposed mechanism for community input between votes? As it reads there is none.
Rubber stamping and emergency powers is not the same as ongoing representation.

@mikemetagov’s team laid out a plan. I would unpack all the components in that plan and explore what is feasible and then start executing against them in parallel until we (the DAO) have more data to make decisions against.

Timing is of the essence. We have the tools and research in place. Right now I feel we are in a state of atrophy.

It’s about how we collectively align and execute as a community.

I agree and understand. Defining these roles would be helpful and seemingly avoid repeating previous mistakes where roles have been left ambiguous.

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A key element that hasn’t been covered in this discussion is the actual budget of the proposed foundation; This temp check mentions a single sentence to ‘ballpark’ a $15 million dollar budget per year which adds significant colour to why this temp check has received the engagement and concern it has.

Given current market conditions across the industry and Ethereum it needs to be acknowledged that this is a monumental budget. This budget would cover “ENS Labs, service provider program (SPP), and public goods and ecosystem initiatives”, based on previous data this would mean ENS Labs would consume ~65% of this budget ($9.7m), this budget was more than doubled from $4.1m following this proposal where the justification for this increase heavily leaned on building and budgeting for Namechain.

Earlier this year ENS Labs announced that the Namechain L2 development was being deprecated, something FireEyes (and the wider ENS ecosystem) fully supported, because the core development of the ENS Protocol is something ENS Labs developers are extremely well versed in and are trusted by the wider community to manage.

However, should this trust mean ENS Labs should get unfiltered access to the DAO treasury and appoint their own accountability structures? Or is the assumption that ENS Labs could make compromises around budget? This seems prudent given market conditions and the decline of ENS protocol revenue.

These are exactly the kind of multi-million dollar questions that beg for strong accountability structures. If the proposed funding model does not involve a DAO-wide vote and instead relies on a 5-person board to ratify funding decisions for more than 10% of the DAO treasury in a year, we need to be very sure that this structure is robust and representative.

So with AVSA is stepping down this means Katherine (ENS Labs), Nick (ENS Labs) and Validator (ENS Labs) will be selecting and going through the ‘hiring process’ with 3 potential foundation directors. This foundation will then be the only direct accountability mechanism to ENS Labs budget and spending.

This may read as an attack of the productivity of ENS Labs, but we genuinely believe ENS Labs are making significantly more impact to ENS than any other contributor. However, regardless of the impact made or expected in the future, it is irresponsible as a DAO and protocol to hand the foundation a blank check without a serious examination of the proposed spending.

Perhaps a productive next step here (to address the concerns shared by many comments in this thread) is to divide the proposal into stages:

  1. Ratify the Foundation structure (expansion, board makeup, responsibilities, etc)
  2. Ratify the Foundation budget for the next funding cycle (breakdown of proposed spending between Labs, SPP, working group/s, etc)

This would allow delegates to independently approve the proposal of a streamlined and expanded foundation (which we believe is something there is directional support for especially with a more open dialog around foundation directors).

Then once this is passed (with or without revisions/changes), the newly appointed board can propose an overall budget for the cycle, covering Labs, SPP, working groups (if any), and other initiatives.

This process gives the DAO a true right of refusal over it’s own capital, as opposed to the ability to claw back a proposed budget after the fact, as it becomes more clear where that capital is being allocated and how these decisions were reached. Rather than a single ‘catch all’ proposal for $15,000,000 dollars and a restructured foundation.

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These are off topic attacks so I will only address these two claims this one time.

  1. The claim that the DAO doesn’t have visibility into how Labs spends its budget is not accurate. ENS Labs publishes detailed quarterly financial and operational reports, including full breakdowns of how budget is being allocated across teams and workstreams. Those are avaliable here.

  2. Deprecation of Namechain was not a quiet or easy decision. ENS Labs published a full explanation of the rationale here: https://ens.domains/blog/post/ens-staying-on-ethereum. I’d also push back on the implication that budget should automatically end when a tech stack is deprecated - the team who would have built the tech stack are still building ENS and dedicated to making ENSv2 a successful protocol upgrade.

Now actually onto something substantive: separating the structure vote from the budget vote doesn’t give the DAO more control, it just creates two sequential battlegrounds where the same objections can be relitigated twice, and it introduces a governance gap where the Foundation structure exists but has no ratified mandate to act. That’s the same tension working groups are in right now and I think I can speak for our current stewards that it’s an extremely suboptimal position to be in.

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