ENS Labs has revised a treasury-control governance proposal after delegates pushed back, keeping the DAO in charge of its primary operational wallet. The changes follow criticism that the original plan gave the ENS Foundation too much authority over funds.
What the revision changes
Under the updated proposal, the DAO retains custody of its main operational wallet, which holds ETH and stablecoins. The $65 million Endowment Safe will still move to the ENS Foundation, but that transition is now subject to a timelock and cancellation rights held by the Security Council. The DAO's 54.6 million ENS tokens remain with tokenholders — they aren't being transferred to the foundation.
The ENS Foundation will receive a 1 million ENS grant that vests over multiple years, not all at once. That structure gives the DAO ongoing oversight rather than a one-time handover.
Why delegates pushed back
Delegate pushback successfully changed the proposal, showing that DAO governance can work as intended. The original draft raised concerns about centralizing control of treasury assets. By revising it, ENS Labs acknowledged those concerns while still aiming to give the foundation enough resources to operate professionally.
ENS Labs has said it wants to balance professional execution with decentralized control. The revised proposal reflects that tension — the foundation gets a dedicated endowment, but the DAO keeps the keys to its day-to-day funds and retains veto power over the Endowment Safe through the Security Council.
What happens next
The Endowment Safe transition is pending the timelock and any potential cancellation by the Security Council. The DAO's tokenholders continue to hold their 54.6 million ENS tokens, and the foundation's grant will vest over the coming years. The question now is whether this compromise holds — and whether delegates will trust the foundation to execute without further friction.
