ENS Labs Drops Plan to Shift Treasury Control to Foundation

ENS Labs is changing course on its governance plans. Katherine Wu, the chief operating officer of ENS Labs, shared a new draft on Thursday detailing the creation of an ENS Foundation. Importantly, the updated proposal removes an earlier plan to shift the decentralized autonomous organization operational wallet to the new entity. This decision comes after weeks of heavy opposition from community delegates who worried about losing direct control.

The community reaction highlights how protective decentralized finance participants are when it comes to treasury management. Delegates voiced clear concerns about moving financial control away from the community DAO. By listening to this feedback and dropping the wallet transfer, ENS Labs shows that community governance still holds real weight in major protocol decisions.

Traders and governance participants should watch how the community votes on this revised draft in the coming days. While the foundation will still serve its intended purpose, keeping the operational wallet safely in the hands of the DAO removes a major sticking point. This update should help restore calm among token holders as the project moves forward.