ENS founder controls 50% of votes as Ethereum governance debate intensifies

ENS token rose 3.2% to $2.84 on July 14 as the DAO moved to seat a new Security Council, but the vote exposed a deeper concentration problem: one address controls roughly half of all delegated voting power.

"The current system lets a single entity effectively veto any governance outcome, which contradicts the premise of decentralized decision-making," Alex Netto, founder of Blockful and an ENS delegate since 2022, said.

The onchain vote to install a 5-of-8 Security Council had 712,320 ENS tokens in favor and zero against as of Monday, with voting closing around July 20. The measure needs 1 million tokens for quorum. The new council replaces a body whose term expires July 24, after co-founder Nick Johnson blocked an earlier renewal by voting against EP 6.45 last month. Johnson, who goes by nick.eth, is estimated to control roughly 3.26 million ENS tokens — about half of all ENS delegated to any address, according to Tally data.

The concentration risk extends beyond ENS. Ethereum's broader governance model relies on token-weighted voting across dozens of protocols, meaning a small number of large holders can dictate outcomes on critical decisions — from treasury allocations to protocol upgrades. The ENS vote closes July 20, and how it resolves could set a precedent for how other DAOs address similar centralization concerns.

One Address, Half the Power

Johnson's control of roughly 50% of delegated ENS tokens means he can single-handedly meet or block quorum on any vote. When EP 6.45 — a routine Security Council renewal — came up for an onchain vote in June, Johnson voted against it, and the measure failed. The episode prompted at least one community member to propose dissolving the DAO entirely.

The new proposal, EP 6.50, raises the council's cancellation threshold to 5-of-8 from 4-of-8 and requires elected members to sign a binding Appointment Agreement with the ENS Foundation, complete KYC checks, and undergo background screening before being seated. The council's authority is limited to canceling timelocked proposals deemed malicious — it cannot propose, amend, or initiate governance actions.

What the ENS Fight Means for Ethereum Governance

ENS is the largest onchain naming protocol, with a token market capitalization near $172 million, according to CoinGecko. Its governance structure mirrors that of many Ethereum-based DAOs: token-weighted voting, a timelock controller, and a security council with emergency veto power.

The concentration of voting power in one address is not unique to ENS. Across Ethereum's DAO ecosystem, a small number of large holders — often founders, early investors, or venture funds — control outsized shares of voting tokens. This creates a structural tension between the ideal of decentralized governance and the reality of concentrated economic power.

ENS token traded at $2.84 as of 14:30 UTC, up 3.2% over 24 hours but trailing ETH's 5.3% gain. The token is down roughly 14% over the past 30 days, CoinGecko data shows.

The vote closes around July 20. If it passes, the new council will hold veto power for two years, until July 16, 2028. If it fails, the DAO will operate without a security council after July 24, leaving it exposed to malicious governance proposals.

This article is for informational purposes only and does not constitute investment advice.