In today's digital world, blockchain technology is evolving rapidly, and the Ethereum Name Service (ENS) token is an important part of this change. The ENS token was officially launched on November 9, 2021. The total number of tokens issued in its initial coin offering (ICO) is 100 million, and the annual inflation rate can reach up to 2%. The specific amount is determined by the decentralized autonomous organization (DAO) decides.
ENS Token Allocation Status
The distribution of ENS tokens is very transparent. The specific distribution is as follows:
Treasury (unlocked in 4 years): 50 million, accounting for 50% of the total ENS, 10% of which will be released during the DAO.
Airdropped to users (>137,000 accounts): 25 million, accounting for 25% of the total ENS supply, but only 19.6 million (78.5%) were claimed.
ENS core contributors (unlocked in 4 years): 18.96 million, accounting for 18.96% of the total.
Other ENS contributors: 06,040, accounting for 6.04% of the total.
Such a distribution strategy fully reflects ENS's emphasis on the community, especially the airdrop of 50% of the tokens to users and contributors, which will undoubtedly have an impact on the future ENS token price.
Performance and potential of the ENS protocol
So, what is the potential of ENS? We can analyze its market performance through some data. According to the latest data, the number of domain registrations of the ENS protocol has reached 1.12 million, and it has integrated more than 500 wallets or protocols, with more than 400,000 active users. These data show the strong potential of ENS in its user base.
ENS’s historical total revenue is approximately US$56.7 million, ranking 15th among all projects, showing its relatively strong profitability. Unlike other protocols, ENS’s revenue mainly comes from users’ first purchases or renewals. According to statistics, nearly 90% of users spend approximately US$5 per year on ENS, which makes ENS’s business model relatively stable.
Since ENS announced its airdrop, its revenue data has shown explosive growth, with revenue increasing more than eightfold in the past year and revenue exceeding $1.8 million for 11 consecutive months. This growth is mainly due to the revenue from new domain registrations, which is more than 10 times the renewal revenue.
Market demand and future prospects of ENS
The domain name registration volume of ENS has experienced two obvious explosive periods. The first outbreak period occurred after ENS announced the airdrop, and many users rushed in to obtain the airdrop. The second outbreak period is the wave of ENS domain name hype starting in April 2022. These events demonstrate the growing demand for ENS in the market.
Judging from the revenue component data in the past year and a half, renewal revenue from old users has increased steadily, accounting for about 10% of total revenue. This means that as the user base expands and the market matures, ENS's revenue will continue to grow.
ENS is not just a domain registration service, but more like an identity tag. In the Web2 era, not everyone needs a domain name, but in the Web3 era, a wallet address has almost become a necessity to enter this new world. With the gradual improvement of Web3 infrastructure, ENS will become an important part of decentralized identity (DID).
in conclusion
Overall, the potential of ENS tokens cannot be underestimated. As the Web3 ecosystem flourishes, ENS will play an increasingly important role in the future digital world. Whether it is from the perspective of user needs or the sustainability of the business model, ENS has a broad market space. For investors, the ENS token is certainly an option worth paying attention to.
As the infrastructure of Web3 is gradually improved in the future, ENS will play an important role in this emerging market and become an indispensable part. For investors looking for opportunities in this area, the prospects of ENS tokens are worth looking forward to.