With the launch of the ENS token, Ethereum Name Service has moved onto its next phase.
A Quick Primer on ENS ππ»
At the most basic level, ENS functions as a naming protocol that maps human-readable names to domain addresses.
Recently, ENS integrated with DNS and can now map DNS domains (.com, .cash, etc.) to a crypto address capable of receiving a variety of assets (ETH, BTC, etc).
Important Note: ENS aims to integrate with our existing DNS (Domain Name System).
ENSβ decision to integrate into DNS is a strategic decision by the founding team with the intention of building a protocol and registrar that the legacy world will be able to adopt.
However, ENS is working on more than just domains.
In the aggregate, the vision of ENS is special:
β’ Web3 Identity and username
β’ Native payments
β’ Enhanced property rights
β’ Enable features for decentralized websites
The ENS Token airdrop was well done for several reasons: 1. It didn't reward users by capital spent 2. Multiplier on "active participation" (e.g. reverse record set) 3. Required signature of ENS Constitution which outlined core principles for ENS
ENS Monetization
ENS obtains revenue from: 1. Registrations - the creation of ENS domain (one time
purchase) 2. Renewal β keeping ENS domain (pay yearly fee)
Currently, ENS obtains a majority of its revenues from registrations vs renewals.
Nov will be ENS' best month of revenue generation. However, with the ENS token announcement on Nov 1, it's likely that the increase in registration was in part from individuals trying to farm the token launch.
So is this an outlier, or will ENS see growth in the coming months?
Since its launch, ENS has accrued nearly 13,000 Ether in revenue with approximately $2.5 million in renewal fees and 10,000 in registration fees.
In real-time value (e.g. selling ETH as it comes in) this would equate to $20 million in revenue.
ENS Registrar holds 4k ETH (~20M)
ENS Sustainability & Growth
The immediate path forward for ENS is clear: 1. Expand ENS domain adoption to generate revenue 2. Integrate with other protocols/blockchains 3. Integrate more features like IPFS 4. Becoming go-to Web3 wallet sign-on & Identity
While ENSβ $5.5 billion valuation might be on the higher end of its current potential to generate fees, the market for ENS to create an identity layer for individuals, websites, and transacting on the internet is massive. messari.io/article/a-primβ¦
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
As parachains auction take off, expect many protocols to be looking to the various funds that have invested in DOT and can therefore influence which projects receive early slots.
Of the top 50 assets held by funds, 32% are smart contract platforms while 16% are decentralized exchanges.
Surprisingly, @BreederDodo is the most commonly owned DEX.
.@Chiliz continues to prove out the brand loyalty token model with cumulative Chiliz fan token volume crossing $40 billion.
Connecting with large brands to create better fan engagement and loyalty will be most successful for the largest brands hence PSG and Man City's success over the past several months.
Man City token launch in May and immediately led in volumes.
Chiliz also continues to push into new markets, entering into deals across the NBA, Racing, and NFL. I'm interested to see how they integrate with U.S users (likely through NFTs) given that Chiliz exchange doesn't currently support U.S users.
.@Quora is launching a new subscription model called Quora+ where Quora writers will have the opportunity to earn revenue from their answers to questions.
How it works.
Writers can opt into Quora+ (paywall content) and earn:
1) When writers followers who are Quora+ subscribers view their paywalled content.
2)A referral bonus for new paying subscribers who sign up for Quora+ by clicking through from their paywalled content.
Content platforms are realizing that they need to reward the contributors who make their platforms valuable.
Medium already lets writers earn, but not enough compared to the revenue they generate. Maybe Quora's model will be different, maybe not. Time will tell.
The NFT marketplace landscape is heating up with Coinbase and FTX announcing NFT platforms and trading.
Centralized exchanges in general will have some key advantages and some disadvantages as they seek to become dominant NFT exchange venues.
1/
Competitive advantages for Coinbase / FTX offering NFTs: 1. Custody for normies 2. High-value NFT Custody β Coinbase stores assets, but people can still bid on your NFT 3. Brand & distribution/audience 4. Partnerships β obtain IP rights
Potential Disadvantages: 1. Regulation - many NFTs will resemble securities 2. Asset breadth & speed - Coinbase has to integrate a lot of assets and might take more time to add assets 3. Integrations β more permissionless marketplaces will likely integrate faster over time