Despite only being launched this Monday, Ethereum Name Service‘s governance token, ENS, has reportedly already hit a fully diluted market capitalization of over $5.4 billion, rapidly climbing as the 176th most prominent crypto in the world with a market price value of about $53.58. The token’s price has since moved up and down as of this writing.
As per ENS’ official announcement on Mirror, the newly-launched governance token aims to upscale the decentralization of the widely used domain service for ETH wallets. It adds that ENS tokens will specifically be used to vote on a constitution proposal and govern protocol strictures – akin to other existing governance tokens.
The announcement notes that ETH wallet users who have previously created an ENS domain have the chance to claim their respective ENS tokens from the dedicated website until May 4 of next year. Unclaimed tokens will then purportedly go straight to ENS’ decentralized autonomous organization (DAO) treasury.
Another factor to take note of here is the term “fully diluted.” It refers to the market capitalization of a particular token ‘if’ its total supply were already in circulation. For example, despite the ENS token’s whopping $5.4 billion figure noted above, only a tenth of the projected total supply of 100,000,000 tokens is currently in circulation.
Nevertheless, the fact that it has risen to such heights only a day after it officially launched speaks volumes to people’s interest in the newly-launched governance token.