Cryptocurrency

ENS DAO considers proposal to auction 10,000 ETH for USDC

Hull Invest

The Ethereum Name Service (ENS) DAO is considering a proposal to sell 10,000 ETH on USDC through Gnosis Auctions.

governance suggestion We aim to diversify the ENS DAO Treasury, submitted on January 18th. Currently, DAO holds approximately 40,746 ETH and 2.46 million USDC.

However, as the bear market drags on, the DAO may be in a vulnerable position due to overexposure to a single volatile asset. For context, ETH has lost about 52% of its value year-over-year.

As a result, the DAO is looking to convert about 25% of its ETH holdings into USDC.

The sale will be done through a Gnosis auction with a minimum bid of $1,300 per ETH. The sale will generate approximately $13 million in USDC, which will be remitted to the DAO Treasury Department.

The proposal added that the funds realized from the auction would be used to cover the DAO’s operating expenses for the next two years.

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