The U.S.-based cryptocurrency exchange Coinbase has cast its first-ever vote within a decentralized autonomous organization (DAO), signaling a growing institutional embrace of decentralized governance. The vote was submitted in favor of a new proposal by the Ethereum Name Service (ENS), reinforcing Coinbase’s active participation in shaping the future of web3 identity standards.
Coinbase Joins ENS DAO Governance
As a newly elected delegate in the ENS DAO, Coinbase utilized its allocated ENS tokens to support a community-driven initiative aimed at expanding access to previously missed airdrop benefits. The proposal, posted on Snapshot, seeks to rectify an oversight in the initial ENS token distribution that excluded certain users from receiving a "2x token multiplier" due to technical criteria limitations.
Under the revised proposal, eligibility would extend to any account that used an ENS name as its primary identifier—regardless of registration timing or suffix format. This change aims to create a fairer and more inclusive distribution model aligned with ENS’s core values of decentralization and community ownership.
The governance vote has gained strong momentum, amassing over 3.45 million votes in favor. Coinbase contributed 453,980 ENS tokens to the approval, making it the second-largest supporter of the proposal—just behind Brantly Millegan, ENS’s Director of Operations.
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A Milestone for Institutional Participation
This vote marks a significant milestone: it is believed to be the first time Coinbase, as a corporate entity, has formally participated in DAO governance. In a statement, Alex Reeve, Product Identity Lead at Coinbase, emphasized the company’s long-term commitment to building open, user-centric digital identity solutions.
“We’re excited to be part of the ENS DAO and community and to cast our first vote as part of this ecosystem. As we said in our DAO application, we believe that the ecosystem needs a robust and decentralized identity standard to flourish, and this is the first step of many as we strive to help build this standard in partnership with ENS and the broader community.”
Coinbase had previously missed voting on ENS’s inaugural governance proposal due to internal technical issues. However, those hurdles have since been resolved, allowing the exchange to actively engage in protocol-level decision-making.
Brantly Millegan acknowledged the development on Twitter, expressing enthusiasm about Coinbase’s involvement:
“Amazing to see Coinbase vote on the latest ENS DAO proposal.”
He also confirmed that the earlier missed vote—related to formally granting powers from the ENS multisig—was due to technical constraints on Coinbase’s side, now resolved.
Understanding Ethereum Name Service (ENS)
The Ethereum Name Service (ENS) is a foundational web3 infrastructure project designed to simplify interactions on the blockchain. Much like the traditional Domain Name System (DNS) translates complex IP addresses into readable URLs (e.g., google.com), ENS converts lengthy cryptocurrency wallet addresses into human-readable names ending in .eth.
For example, instead of sharing a string like 0x4bbeEB066eD09B7AEd07bF39EEe0460DFa261520, users can register and use yourname.eth as their permanent digital identity across platforms.
ENS was co-founded by Nick Johnson and Alex Van de Sande of the Ethereum Foundation. From its inception, ENS has been guided by principles of openness, decentralization, non-profit operation, and community stewardship.
In November 2021, ENS launched its native governance token and transitioned key protocol controls to a DAO structure. Just days after the airdrop, the project’s market capitalization surged past $1 billion—a testament to widespread user adoption and confidence in its long-term vision.
“ENS isn’t a DAO-experiment project; it’s a naming project,” Millegan told Decrypt. “And we thought that DAOs had matured enough that we could trust one with key parameters of the ENS protocol.”
Why Decentralized Identity Matters
In today’s digital landscape, identity remains fragmented across centralized platforms—social media accounts, email providers, financial institutions—all of which control user data and access. ENS offers an alternative: self-sovereign identity rooted in blockchain technology.
With an ENS name, users can:
- Receive cryptocurrency without risking address errors
- Host decentralized websites via IPFS
- Use their
.ethname as a login across dApps (decentralized applications) - Store metadata like profile pictures and social links on-chain
This shift empowers individuals with full ownership and control over their digital presence—no intermediaries required.
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FAQ: Common Questions About ENS and Coinbase’s Role
Q: What is a DAO delegate?
A: A DAO delegate is an entity entrusted with voting power on behalf of token holders. Instead of every individual voting separately, users can delegate their tokens to trusted representatives who participate in governance proposals.
Q: Why did some users miss out on the 2x ENS token multiplier?
A: The initial airdrop criteria favored early adopters who registered .eth names before specific deadlines. Some legitimate users who actively used ENS names but didn’t meet narrow technical requirements were excluded—a gap the new proposal aims to close.
Q: Can anyone become an ENS DAO delegate?
A: Yes. Any ENS token holder can declare themselves a delegate and invite others to delegate voting power to them. Transparency and reputation play key roles in gaining community trust.
Q: Does Coinbase now influence ENS decisions?
A: While Coinbase holds significant voting weight (over 450k tokens), it does not have unilateral control. Governance decisions require broad consensus, ensuring no single entity dominates protocol direction.
Q: How can I participate in ENS governance?
A: You can participate by holding ENS tokens, joining discussions on forums like Discourse, submitting or voting on proposals via Snapshot, or delegating your vote to a trusted delegate.
Q: Is ENS only for Ethereum addresses?
A: While built on Ethereum, ENS supports multiple blockchain networks and asset types—including Bitcoin, Solana, and URL records—making it a cross-chain identity solution.
Looking Ahead: The Future of Web3 Identity
Coinbase’s formal entry into DAO governance reflects a broader trend: major crypto platforms are increasingly recognizing decentralized identity as critical infrastructure for the next generation of the internet.
By supporting inclusive policy changes like expanded airdrop eligibility, institutions like Coinbase help strengthen community trust and promote equitable access—key pillars of sustainable web3 ecosystems.
ENS continues to evolve beyond simple address mapping. With integrations into wallets, social layers (like decentralized social graphs), and even physical world credentials, .eth domains are becoming digital passports for the decentralized era.
Alex Reeve confirmed that Coinbase plans to continue engaging with the ENS community through regular updates and public discussions—including a scheduled Twitter Spaces session focused on identity innovation in web3.
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As more users claim their .eth names and institutions align with community-driven governance models, the foundation for a truly open and user-owned internet grows stronger—one vote, one name, one wallet at a time.
Core Keywords: Ethereum Name Service, ENS DAO, decentralized identity, DAO governance, Coinbase crypto exchange, blockchain naming system, web3 identity