ENS Labs Walks Back Treasury Proposal After Delegate Pushback

ENS Labs has revised its governance proposal after facing delegate pushback over treasury control. The original plan aimed to transfer primary operational wallet custody to the Foundation, but this change was met with criticism from delegates who felt it would compromise decentralized control.

In response, ENS Labs chose to retain custody of the DAO's primary operational wallet, which includes ETH and stablecoins, rather than moving broader control to the Foundation. The $65 million Endowment Safe is still set to transition to the Foundation, subject to a timelock and Security Council cancellation rights.

The revised proposal also maintains the DAO's 54.6 million ENS tokens with tokenholders, while granting the Foundation a 1 million ENS grant that vests over multiple years. This compromise acknowledges the value of professional management while preserving core treasury control within the DAO.