ENS DAO proposes foundation overhaul amid 5 key governance failures

- ENS DAO eyeing Foundation-led management after identifying operational overload, unclear roles, and other setbacks - Proposal would shift oversight of grants and treasury to Foundation, while tokenholders retain protocol control On June 20, 2026, The Block reported that, on June 19, 2024, the Ethereum Name Service (ENS) Decentralized Autonomous Organization (DAO) published a proposal to restructure its governance, and the proposal would shift operational management, grant oversight, and treasury functions to the ENS Foundation. This proposal comes as the DAO confronts longstanding coordination and management issues, and it aims to streamline decision-making and clarify responsibilities for greater effectiveness. According to The Block on June 20, 2026, the proposal identifies five structural failures in the DAO’s current setup. First, tokenholders experience operational overload, as they are tasked with day-to-day decision-making that may exceed their expertise. Second, unclear delegation between the DAO, Foundation, and working groups has created blurred lines of responsibility and frequent inefficiencies. Third, governance is largely reactive and focuses on responses to proposals rather than establishing strategic priorities. Fourth, budgeting and resource allocation are fragmented, which hinders effective treasury and grant management. Fifth, the structure’s complexity and slow processes pose challenges for attracting and retaining top talent. If enacted, the changes would see the ENS Foundation centralize operational authority, oversee grants, and manage the treasury, while tokenholders would retain power over protocol-level control and director removal. As a result, the move aims to streamline organizational functions while enabling tokenholders to maintain essential oversight, and ENS’s independent and self-funded approach distinguishes it from other projects that have pursued consolidation or legal restructuring. According to CoinMarketCap on June 20, 2026, Ethereum Name Service (ENS) is trading at $4.838, with a 7.276% decrease in 24-hour trading volume.