Ethereum Name Service tokenholders have approved a major governance overhaul that gives the ENS Foundation control over its $65 million Endowment. The vote passed with roughly 70% support and took effect onchain Tuesday, August 11. Consequently, ENS now has a formal organization to manage policy, trademarks, funding, and external relationships.
Foundation Takes Operational Role
The expanded Foundation will operate with a full-time executive director, dedicated staff, and a five-member board. Additionally, it will oversee revenue generated through .eth name registrations and manage the protocol’s off-chain affairs.
The DAO will transfer 1 million ENS tokens to fund employee compensation. However, tokenholders will retain control over the DAO’s broader ENS holdings, representing about 54.6% of total supply.
Moreover, tokenholders can appoint or remove Foundation directors. The initial board includes Alexander Urbelis, Nick Johnson, Kartik Talwar, Brett Sun, and Anthony Leutenegger.
New Structure Follows Governance Dispute
The restructuring separates operational responsibilities from protocol development. ENS Labs will continue building the protocol, including the planned ENSv2 upgrade.
Significantly, the Foundation will publish budgets and provide quarterly grant updates alongside annual audited financial statements. Endowment transactions will also face a nine-day timelock.
The changes follow a contentious governance dispute involving Johnson and the Security Council. Hence, the new structure seeks clearer responsibilities while strengthening ENS’s ability to operate beyond its decentralized governance system.
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