The Ethereum Foundation has announced the allocation of approximately $165 million, equating to 50,000 Ether (ETH), to support the development of DeFi, indicating a commitment to continue strengthening community connections and transparency within the Ethereum ecosystem.
Details of Fund Management Made Public to Ensure Safety and Transparency
Ethereum co-founder Vitalik Buterin stated on Twitter on January 18 that the foundation will undergo organizational adjustments, continuing to enhance community connections and support developers while committing to increased transparency.
Fund Management Method: The 50,000 Ether (ETH) will be stored in a multi-signature wallet.
Operational Testing: The wallet has already undergone transactional testing on the lending protocol Aave.
Official Activation Timeline: According to Ethereum Foundation member Hsiao-Wei Wang, the wallet setup may take a few more days.
This amount represents 18.5% of the total Ether (ETH) held by the Ethereum Foundation, demonstrating Ethereum’s determination to support the development of its own DeFi ecosystem.
Ethereum Foundation member Hsiao-Wei Wang announces that testing of multi-signature wallet transactions has begun.
Foundation’s Financial Status and Community Pressure
According to Arkham data, the total Ether assets of the Ethereum Foundation have decreased from 610,000 Ether (ETH) in 2020 to only 260,000 Ether (ETH) currently, approximately $894 million.
The Ethereum Foundation currently has only 260,000 Ether.
The reduction is attributed to expenditures for salary payments and hosting offline events, among other reasons, which has raised concerns among community members regarding selling pressure on Ether. However, Ethereum core developer Eric Conner believes that the foundation’s staking revenue is sufficient to cover internal operational expenses, which may alleviate market selling pressure and stabilize community confidence in the future.
Ethereum core developer Eric Conner urges the community not to worry.
Ongoing Criticism, Vitalik Stays True to Initial Intentions
Recently, some members of the Ethereum community have criticized the foundation for its apparent lack of participation and management, believing this to be one of the reasons for Ether’s underperformance compared to Bitcoin (BTC) and Solana (SOL). They assert that competing blockchain operators actively engage with regulatory bodies, thereby boosting market confidence and driving price increases.
In response, Vitalik stated that the mission of the Ethereum Foundation is to focus on technology and ecosystem development, maintaining neutrality and refraining from involvement in political or regulatory controversies to ensure Ethereum’s credibility and long-term direction.
Vitalik’s stance has garnered support from many industry figures, such as CryptoQuant founder Ki Young Ju, who praised him and the foundation for prioritizing “creating value” over “chasing money” amid the current trend of celebrities and politicians profiting from meme coins. This highlights the importance of Ethereum’s commitment to its core principles amidst market volatility.
CryptoQuant founder publicly praises Vitalik for staying true to his original intent.
(Vitalik: will adjust the leadership structure of the Ethereum Foundation and will not become a dominant force in the ecosystem.)
Risk Warning
Cryptocurrency investments carry a high level of risk, and their prices can be highly volatile. You may lose your entire principal. Please assess risks carefully.