Karpatkey DAO chosen to manage Ethereum Name Service’s endowment fund

1.76 million voters choose Karpatkey DAO as the ENS endowment fund's new manager

Decentralised Autonomous Organisation                                 
Karpatkey DAO has been chosen as the new fund manager – Photo: Shutterstock
                                

Ethereum Name Service (ENS) decentralised autonomous organisation (DAO) has elected a new fund manager to manage its endowment fund in the aftermath of the so-called crypto winter. 

A similar concept to the internet’s Domain Name System (DNS), the ENS is a distributed and open naming system that maps human-readable names to machine-readable Ethereum addresses. 

In a vote that opened on 18 November and closed on 23 November, members chose Karpatkey DAO, a decentralised finance (DeFi) fund management organisation. 

1.76 million voters choose Karpatkey DAO

Karpatkey received 1.76 million votes, while “none of the above” came in second place with 1.3 million votes. In its proposal, the manager stated: “The funds would be managed transparently and completely on-chain through a non-custodial solution.

“The core of Karpatkey’s non-custodial solution relies on the most battle-tested tooling to manage DAO treasuries: a proxy Management Safe and the Zodiac Roles Modifier.”

Safe is popular decentralised custodial service that has secured almost $40bn (£33bn) in Ethereum contracts, while Zodiac is a collection of tools built according to an open standard.

The latter was developed by Gnosis Guild, a organisation linked to the incubator Gnosis, which helped establish Karpatkey. 

Low and medium risk DeFi strategies

The aim of the ENS endowment fund, punningly named the ENS Endaoment, is to establish a sustainable fund that can maintain development during periods of macroeconomic uncertainty when registrations and renewal revenue declines.

Karpatkey said it plans to use “low-risk, medium complexity DeFi strategies” to help the Endaoment, such as “providing liquidity to automated market makers”.

The manager initially pledged $52m to the Endaoment, but raised its final stage offer to $69m with a projected return of 5.83%. 

Ethereum (ETH) has lost $298bn in market capitalisation since the start of the year, as the flurry of NFT-trading and interest in smart contracts witnessed in 2020 and 2021 dissipated in the face of runaway inflation and higher interest rates.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image