TechFlow reports, July 2, according to The Defiant, ENS DAO is facing a severe governance crisis. ENS co-founder Nick Johnson holds approximately 3.26 million ENS tokens, accounting for nearly 50% of all current delegated voting power. He voted against the on-chain binding vote for the Security Council renewal on June 30, causing the proposal to fail with 82% against votes. The Security Council authorization will expire on July 24. Previously, Johnson also self-delegated a large amount of voting power to support the proposal to transfer the DAO operational wallet, ENS token holdings, and the endowment managed by Karpatkey to the five-member board of the ENS Foundation, triggering strong community skepticism regarding "governance capture".
Rotki founder Lefteris Karapetsas stated bluntly "the DAO is dead". Security Council member Brantly Millegan characterized the proposal as "ENS Labs' act of fiscal capture". In response, "The DAO" original code author Christoph Jentzsch publicly proposed directly dissolving ENS DAO, suggesting destroying the ENSv2 universal router key and distributing remaining funds to officially transition the protocol into public infrastructure. Currently, the Security Council on-chain vote will close on July 5, ENS Labs COO Katherine Wu has released a draft successor council, with the nomination window ending on July 3.
