Ethereum Identify Service’s native token ENS surged over 40% on Jan. 3 after Ethereum co-founder Vitalik Buterin spoke positively in regards to the platform and stated it was “tremendous essential” for the ETH ecosystem.
As of press time, ENS was buying and selling at roughly $13.94, up 40.38% over the past 24 hours. The token has a market cap of round $423.20 million.
The token’s buying and selling quantity over the identical interval stood at roughly $364.28 million, indicating a excessive stage of market exercise.
Addresses linked to Ethereum names collectively management round $277 million in varied cryptocurrencies, together with ether, wrapped ether, USDC, and Uniswap tokens. The massive sum is indicative of considerable monetary exercise throughout the ENS ecosystem.
ENS integration
Buterin’s endorsement of ENS, describing it as “tremendous essential,” has performed a pivotal function within the upward pattern.
He believes that Layer-2 blockchains should combine ENS domains to boost the person expertise in decentralized finance (DeFi) as they want a trustless, Merkle-proof-based CCIP resolver. Such integration would enable ENS subdomains to be registerable, updatable, and readable straight on Layer-2 platforms.
Buterin additionally just lately proposed a brand new tax on ENS domains, aiming to make sure broader model adoption and decentralized possession of ENS addresses. The proposed tax entails a 3% annual charge primarily based on the best bid for a site title.
This charge mannequin is meant to discourage the hoarding of domains for revenue and encourage their use by entities who will actively use them, thus selling wider adoption and doubtlessly benefiting ENS token holders because the funds from these charges would help the DAO (Decentralized Autonomous Group) related to ENS.
Demand-based recurring pricing
Buterin additionally beforehand recommended options to Harberger taxing ENS domains in 2022.
As an alternative of Harberger’s mannequin, the place asset homeowners set their asset’s worth and pay a proportion of it in yearly taxes, Buterin proposed a demand-based recurring pricing mannequin.
This mannequin would see annual area charges rise in proportion to a site’s valuation, which in flip would enhance primarily based on open bids made by different customers. The objective of this strategy is to create a fairer and extra dynamic pricing mechanism that displays the precise demand and worth of ENS domains.
