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Ethereum Foundation Revamps Treasury Strategy Amid Community Scrutiny
The Ethereum Foundation (EF) is set to overhaul its treasury strategy in response to community concerns regarding unexpected sell-offs of Ether (ETH) that have undermined trust within the ecosystem. This initiative comes as the organisation aims to align its short-term financial actions with Ethereum’s long-term vision.
In a recent blog post, the EF outlined its commitment to enhance ecosystem support, especially during market downturns or crucial “pivotal” moments. Hsiao-Wei, the EF director, emphasised that the upcoming 18 months will be pivotal for the Ethereum ecosystem, necessitating a sharpened focus on essential deliverables.
As stated by the EF, its core mission is “to strengthen Ethereum’s ecosystem and uphold its long-standing non-negotiable objectives: enabling applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.”
Increased Transparency for Stakeholders
The EF’s renewed strategy was prompted by backlash from the community after it liquidated part of its ETH holdings, an action that critics argued eroded trust in the ecosystem. With increasing competition from networks like Solana and other high-performance layer-1 solutions, the EF is making significant changes to enhance transparency.
To foster greater trust, the Foundation will publish quarterly and annual reports detailing asset allocations, investment returns, and key operational developments. This step is part of a broader commitment to clarify its financial activities and provide stakeholders with a better understanding of its treasury.
Moreover, the Foundation plans to utilise its ETH reserves more dynamically. This includes strategies such as solo staking and depositing wrapped Ether (wETH) into decentralised finance (DeFi) lending protocols to generate yield. The EF also aims to explore other elements within the DeFi space, such as real-world assets (RWA), to maximise returns on its considerable crypto holdings.
Current Financial Standing
As of late October, the EF treasury boasted approximately US$970.2 million (AU$1.49 billion), consisting of US$788.7 million (AU$1.21 billion) in cryptocurrency assets—predominantly held in ETH—and US$181.5 million (AU$278 million) in non-crypto assets.
As for market performance, Ethereum is currently trading at US$2,400 (AU$3,700), reflecting a 6.9% drop in the last 24 hours, as reported by CoinGecko and TradingView.
The EF’s proactive measures to improve transparency and its strategic treasury management are essential steps in regaining community trust and ensuring Ethereum’s competitive edge in the rapidly evolving blockchain space.
