Ethereum Name Service (ENS) is set to conclude a legal dispute concerning the ownership of the eth.link domain. This comes after the decentralized autonomous organization (DAO) of ENS authorized a $300,000 settlement agreement with Manifold Finance. The resolution marks the end of an 18-month legal battle, demonstrating the effective governance mechanism of ENS through its DAO.
DAO’s Decisive Vote
In a DAO vote that concluded on February 26, approximately 88% of participants agreed to the settlement terms, which involve ENS Labs dropping its lawsuit in exchange for a $300,000 payment to Manifold. This arrangement allows ENS to retain the crucial eth.link domain. Additionally, 84% of the vote supported reimbursing ENS Labs for $750,000 in legal expenses incurred during the dispute.
Background of the Dispute
The contention over the eth.link domain began when its registration expired in July 2022. The domain, previously owned by Virgil Griffith, a key contributor to ENS, went unrenewed due to his incarceration. This oversight led to Manifold Finance acquiring the domain at an auction held by Dynadot in September 2022, following the domain’s expiration on GoDaddy.
ENS Labs initiated legal action against Manifold, along with domain registrars GoDaddy and Dynadot, in an Arizona District Court. They successfully obtained a court order preventing the transfer of the domain from ENS’s control, despite the absence of the defendants at the court hearing.
Settlement and Future Implications
The settlement, proposed by Manifold, includes a $300,000 payment from ENS Labs, along with confidentiality and non-disparagement clauses. This agreement ensures the dismissal of the case, allowing ENS Labs to maintain ownership of the eth.link domain.
ENS operates as a blockchain equivalent to the traditional Domain Name System (DNS), facilitating the translation of domain names into IP addresses. The eth.link domain plays a critical role in enabling ENS-based .eth domains to function, bridging the gap between blockchain and traditional internet infrastructure.
Following the dispute, ENS and GoDaddy have reconciled, recently partnering to offer .eth ENS domain holders the ability to link their blockchain domains with traditional domains at no cost. This collaboration signals a positive outcome from the legal saga, reinforcing the importance of the eth.link domain within the ENS ecosystem and the broader blockchain community.
