ENS Labs has revised its treasury-control proposal after delegates pushed back, and the DAO keeps custody of its main operational wallet. The change removes the most contentious part of the plan: the transfer of that wallet to the Foundation.
Why the proposal changed
Delegate criticism drove the revision. The original plan would have moved the operational wallet, which holds ETH and stablecoins, out of the DAO's direct control. That didn't sit well with tokenholders, and their pushback convinced ENS Labs to drop the transfer.
The revised proposal leaves the operational wallet exactly where it is — with the DAO. Tokenholders also retain their 54.6 million ENS tokens, which stay in their hands. That's the bulk of the treasury's value, and it isn't going anywhere.
What stays with the DAO
The DAO's primary operational wallet, including ETH and stablecoins, remains under its custody. That was the sticking point, and it's now off the table. The 54.6 million ENS tokens held by the DAO also stay put, meaning tokenholders keep direct ownership of the protocol's native asset.
ENS Labs didn't walk away empty-handed. The Foundation will receive a 1 million ENS grant, but it vests over multiple years. That's a structured allocation, not a lump-sum transfer.
The Endowment transition
The $65 million Endowment Safe is still set to move to the Foundation, but with new safeguards. The transition will be subject to a timelock, giving the DAO time to react. The Security Council also retains cancellation rights, so it can block the move if something goes wrong.
Those protections weren't in the original plan, and they address the core worry delegates raised. The Endowment isn't being handed over blindly; there are checks in place.
The question now is whether the timelock and Security Council provisions are enough to satisfy delegates who remain uneasy about moving the Endowment at all. The vote on the revised proposal will be the real test.
