The Ethereum Foundation adopts a more structured and transparent cash policy which links operational costs and cash needs to its reserves and ether sales to strengthen its financial situation because it provides for a pivot 18 months in advance.
Its annual operating cost – measured as a percentage of the EF treasure – and the number of years of track will be reassessed regularly, taking into account the market dynamics and the community contribution to ensure that the short -term operations of the Foundation remain aligned on its long -term strategy, said one of the directors of the Foundation on June 4.
HSIAOO-Wei Wang said that the Ethereum Foundation is currently only 2.5 years old before missing money, preparing the track for 18 crucial months because it seeks to deploy more deliberately and provide more support for the ecosystem:
“This policy reflects our conviction that 2025-26 are likely to be essential for Ethereum, justifying an improved concentration on critical deliverables.”
The policy of the tightened treasure follows the community reaction on the unexpected sales of Ether (ETH) of the EF in recent months, a series of movements which, according to some criticism, have undermined confidence in the foundation.
To maintain its transparency commitment, the EF will publish quarterly and annual reports describing its asset assets, investment performance and any significant development during each period.
As of October 31, the Treasury of the Foundation totaled around $ 970.2 million, divided between $ 788.7 million in crypto and $ 181.5 million in non -crypto assets.
More than 81% of the total position of the foundation was in ETH. Since then, the ETH has dropped by approximately 1.8%, according to Coingecko data.
Foundation to engage more with defying
The EF said that it would aim to “win acceptable yields” on the assets of the Treasury by engaging with protocols without authorization which are immutable and carefully audited.
This approach allows the EF to take charge of the protocols that defend what it calls “passion principles” while strengthening its cash position.
In February, the Foundation reserved 45,000 ETH – worth $ 120 million at the time – to deploy to various decentralized funding protocols.
He has already provided ETH and borrowed for $ 2 million from the GHO ecupon (GHO) to the Aave loan protocol, the founder of Aave, the founder of Aave, said on May 29.
Spark and Compound were among the other DEFI protocols who received support from the Foundation.
In relation: Ether ready for a “significant escape” while the ETH price is strengthened compared to the BTC
The Ethereum Foundation has historically abstained to support specific protocols to maintain credible neutrality and avoid promoting any project. However, this position aroused criticism from certain ecosystem innovators, notably the founder of Infinex, Kain Warwick, who accused the foundation of being anti-defi.
The EF also announced a restructuring of its internal development team on June 2, which involved that certain members were dismissed.
He did not reveal how many people have been affected.
The changes are involved in the middle of the underperformance of Eth this bull cycle, lagging behind Bitcoin (BTC) and Solana (soil), which recently marked peaks of all time. ETH, on the other hand, remains 46.5% below its November 2021 peak of $ 4,878.
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