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The Coin Rise 2025-06-05 10:10:19

Ethereum Foundation Reveals New Treasury Policy Amid Market Pressures

The Ethereum Foundation (EF) has introduced a more structured and transparent approach to managing its treasury as it prepares for what it calls a critical 18-month window for Ethereum’s development. The move comes amid concerns over financial sustainability, community trust, and the network’s lagging market performance compared to peers like Bitcoin and Solana. The foundation’s new treasury policy ties its spending and cash reserves directly to its Ether (ETH) holdings and sales. According to EF director Hsiao-Wei Wang, the organization currently has around 2.5 years of runway left, prompting the need for deliberate resource deployment. “This policy reflects our conviction that 2025–26 are likely to be pivotal for Ethereum,” Wang stated, adding that the new structure will ensure operational flexibility without compromising long-term goals. Plans Ahead The EF plans to regularly reassess its annual operating budget as a percentage of total assets while factoring in market volatility and community sentiment. In response to criticism over recent, unannounced ETH sales, the Foundation has pledged to publish quarterly and annual reports detailing its financial status, including asset holdings, investment performance, and major developments. As of October 31, 2024, the Ethereum Foundation held approximately $970.2 million in its treasury—$788.7 million in crypto assets and $181.5 million in traditional holdings. Notably, over 81% of its crypto reserves are held in Ether, which has since declined 1.8% in value, according to CoinGecko data. Ethereum Foundation Engaging with DeFi The Ethereum Foundation has shifted from its previous stance of protocol neutrality to now actively engage with select decentralized finance (DeFi) platforms. The goal is to earn modest but reliable returns on treasury assets by interacting with permissionless, immutable, and thoroughly audited protocols—what the EF calls “Defipunk principles.” Earlier this year, the foundation allocated around $165 million to support Ethereum’s DeFi landscape . It has already supplied ETH and borrowed $2 million in GHO stablecoins via Aave. The EF has also extended support to Spark and Compound protocols, marking a clear departure from its historically hands-off approach. This policy reversal follows criticism from developers like Infinex founder Kain Warwick, who accused the EF of neglecting DeFi’s role in Ethereum’s growth. The foundation also announced a restructuring of its internal development teams on June 2, resulting in undisclosed layoffs. These developments occur as ETH remains 46.5% below its all-time high of $4,878, raising questions about its momentum in the ongoing bull cycle. The post Ethereum Foundation Reveals New Treasury Policy Amid Market Pressures appeared first on TheCoinrise.com .

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