Ethereum Name Service
Crypto Overview
Overview
The Ethereum Name Service (ENS) is a decentralized domain name system built on the Ethereum blockchain. Its primary purpose is to convert machine-readable addresses (like wallet addresses) into human-readable names, similar to how DNS converts IP addresses into domain names.
Intended Utility
ENS tokens serve as the governance token for the ENS protocol, allowing holders to vote on protocol decisions and treasury allocations. The core utility of ENS itself is providing readable names for Ethereum addresses, making cryptocurrency transactions more user-friendly and reducing errors.
Actual Utility Assessment
The protocol shows significant real-world adoption with over 2.8 million .eth names registered as of 2023. Major platforms like Coinbase, OpenSea, and numerous Web3 applications actively support ENS integration. On-chain data confirms regular usage for both domain registration and governance participation.
Token Distribution and Governance
The initial token distribution allocated 25% to .eth name holders, 25% to contributors, and 50% to the DAO treasury. Contributors and core team tokens have a 4-year vesting period with a 1-year cliff, demonstrating commitment to long-term development. The DAO treasury is controlled by token holder votes.
Development Activity
The project maintains active development with regular GitHub commits and protocol improvements. The core team consistently delivers technical updates and infrastructure improvements. The protocol generates revenue through domain registration and renewal fees, which flow to the DAO treasury.
Crypto Impact
To assign a comfort level investing in Ethereum Name Service from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Ethereum Name Service.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.