[EP5.20][Social] ENS Endowment Investment Policy Statement

Abstract

This proposal suggests introducing and implementing an Investment Policy Statement (IPS) for the ENS Endowment.

The Investment Policy Statement (“IPS”) outlines the principles and guidelines for the effective management of the ENS Endowment Fund (the “Endowment”). And provides additional clarity to the Endowment Manager in their duties of achieving the mandate of the ENS Endowment established in EP 2.2.4.

Specification

The creation and implementation of the IPS, will serve the following purposes:

1. Define and assign the responsibilities of all parties involved in the Endowment.
2. Establish clear investment goals and objectives for the Endowment assets.
3. Offer guidance and limitations to the Endowment Manager regarding the investment of the Endowment assets.
4. Establish a basis for evaluating the performance of the Endowment Manager.
5. Express the prudent standards that are expected in the management of the Endowment assets.

The proposed ENS Investment Policy Statement to be ratified can be read: here.

As specified in the IPS, this document will be continually reviewed annually.

Updates from Feedback

Following discussions, the community provided feedback on the draft IPS posted in the September temp check post and the weekly MetaGov calls.

Based on those discussions, the following changes have been incorporated into the final version of the IPS:

• More conservative asset allocation: Increase stablecoin allocation in the Endowment to 40% (up from 20%).
• Regular transfers: Introduce regular monthly transfers of income from the Controller to the Endowment to support continuous growth and reduce future funding requests.

Proposal Success Criteria

For this social proposal to pass, the following quorum and voting requirements must be met:

• Quorum: The proposal must receive a minimum of 1% of the total supply of $ENS (1 million votes) in the form of "For" and "Abstain" votes combined. "Against" votes do not count towards quorum.

• Approval: Once the quorum is reached, the proposal requires a simple majority (>50%) of "For" votes among the "For" and "Against" votes to pass. "Abstain" votes do not count towards the approval calculation.

If approved, the ENS DAO should adopt the final Investment Policy Statement prepared by karpatkey for the ENS Endowment established under EP 2.2.4. If not approved, karpatkey will reassess and propose an alternative structure based on the feedback received.