50,000 ETH Invested in DeFi

While the Foundation's operations continue to face criticism from the outside world, the Ethereum Foundation (EF) has announced that it has set up a new wallet address to formally participate in the DeFi (Decentralized Finance) ecosystem, confirming the recent statement by Ethereum co-founder Vitalik Buterin about the Foundation undergoing organizational changes.

Wang Xiaowei, who has been appointed as a member of the Foundation's leadership, posted on X (formerly Twitter) that the Ethereum Foundation has set up a new multi-signature (multisig) wallet and plans to fund it with approximately $150 million (50,000 ETH) to participate in the DeFi ecosystem. However, as the setup process requires signature confirmation, the transaction process may take a few days to complete.

Transparency and Financial Management Issues Remain a Long-term Concern

The Ethereum Foundation's financial transparency issues have been long-standing, particularly in its treasury management. In recent weeks, many prominent cryptocurrency commentators have raised questions about the Foundation and its leadership, partly due to the poor performance of the ETH market and the increasingly fierce competition from the rival public chain Solana.

Ethereum co-founders Vitalik Buterin and Joe Lubin also stated on Saturday that the Foundation's leadership structure will undergo "major changes".

The community has suggested that the former Ethereum Foundation researcher Danny Ryan, who led the Ethereum PoS upgrade, should replace the current Executive Director Aya Miyaguchi. Additionally, there are calls for the Foundation to invest its approximately $1 billion ETH treasury into Staking or directly deploy it on-chain to increase the Foundation's participation in the ecosystem. The Foundation has long been accused of being the culprit behind ETH sell pressure due to its frequent conversion of ETH to stablecoins to pay salaries.

Paul Dylan-Ennis, a lecturer at the University College Dublin Business School and a prominent Ethereum commentator, stated on X:

"This is an interesting development. If a compromise solution is to be found within the community, it may be that the EF becomes more actively involved in decentralized applications (dapps)."