ENS Labs, the developer behind the Ethereum Name Service, has received a settlement offer from Manifold Finance in the legal battle over the eth.link domain name. The dispute, which began in August 2022, involved several parties in addition to Manifold Finance, including domain registrars.
Manifold Finance proposed a settlement seeking $300,000 from ENS Labs, tied to “confidentiality and non-disparagement agreements.” according to ENS founder Nick Johnson. The deal would resolve the dispute that began when the eth.link domain was transferred and sold outside the control of ENS Labs – the original owner – leading to legal complexities.
Eth.link served as an essential web gateway for the Ethereum community, facilitating access to ENS names via web browsers and supporting major DeFi projects. It was originally assigned to ENS Labs by its owner, Virgil Griffith. However, after the domain was not renewed and a subsequent sale by GoDaddy, the domain was eventually auctioned by Dynadot to Manifold Finance.
Following a preliminary injunction from a federal district court in Phoenix, Arizona, which ordered the return of the domain to ENS Labs, the case has seen many developments.
“Last year we received a preliminary injunction, but that in itself is not sufficient; it just allowed us to keep the name while it was resolved,” Johnson told The Block. “To resolve the matter, it is necessary that we reach an agreement with all parties, or that we take the matter to court.”
DAO involvement
ENS Labs is now deliberating on its forum on how to proceed, with the decentralized autonomous organization considering options including approving the settlement, negotiating a compromise, continuing the lawsuit or dismissing the case and potentially taking control of lose eth.link. The organization has also proposed a vote on the reimbursement of legal fees, which amount to $750,000, from the DAO’s funds.
Manifold did not immediately respond to a request for comment from The Block.
