Ethereum Name Service (ENS) DAO Selects Karpatkey as Its Endowment Fund Manager

By November 24, 2022Ethereum
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Ethereum Name Service (ENS) DAO Selects Karpatkey as Its Endowment Fund Manager
  • 58% voted for Karpatkey, while 43% chose the “None of the above” option.
  • Karpatkey will start managing $52 million of ENS treasury in various decentralized finance protocols. $69 million will be managed later.

Ethereum Name Service’s (ENS) decentralized autonomous organization (DAO) has chosen a fund manager to manage its treasury.

In a vote that started on November 18 and ended on November 23, the DAO voters chose from three fund managers. They were Avantgarde, Karpatkey, and Llama. Almost 58% voted for Karpatkey DAO, a decentralized finance wealth management organization.

Karpatkey was the first choice for ENS co-founder Alex Van de Sande (avsa.eth, 172,000 ENS), Rotkiapp founder Lefteris Karapetsas (lefteris.eth, 166,000 ENS), and wallet provider imToken (imtoken.eth, 152,000 ENS). ENS Labs co-founder and current CEO Nick Johnson (nick.eth, 185,000 ENS) voted for Avantgarde.

However, 43% said they didn’t prefer any of the choices and voted for the “None of the above” option. These include Coinbase (NASDAQ:COIN) (coinbase.eth, 241,000 ENS), former ENS core team member Brantly Millegan (brantly.eth, 217,000 ENS), and fireeyesdao.eth (155,000 ENS).

Karpatkey will help ENS to manage its endowment treasury. This is to ensure “it can meet its ongoing financial obligations even in the face of reduced ETH price and registration/renewal revenue”, according to the proposal.

Karpatkey, which has been around for two years, will start managing $52 million denominated in ETH and USDC, and will exclude ENS tokens. $69 million, with a projected 5.83% return, will be managed in the final stage of Karpatkey’s proposal. The firm will take a 12.5% performance fee and a 0.5% administrative fee.

Karpatkey’s proposal states that the company will invest the allocated funds in low-risk decentralized finance strategies on protocols like Lido and Aave. The funds will be managed completely on-chain via a non-custodial solution developed by Safe and Zodiac, Karpatkey’s partners that hold around $40 billion on their digital asset management platform.

On the Flipside

  • It’s unknown when Karpatkey will start managing the ENS treasury.
  • 43% of voters didn’t choose any of the fund managers. This signals a lack of confidence in either the specific managers or the concept itself.

Why You Should Care

ENS is the leading decentralized domain service provider. The DAO’s decision to select a fund manager signals a strong dedication to the long-term success of ENS. The move is broadly seen as a step forward, considering everything that’s been happening in the crypto industry this year.

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