The Ethereum Foundation announced that it will allocate approximately $165 million, equivalent to 50,000 ETH, to support the development of DeFi, stating that it will continue to strengthen the Ethereum community's connectivity and transparency.
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ToggleDetails of fund operations are made public to ensure safety and transparency
Ethereum co-founder Vitalik Buterin stated on Twitter on 1/18 that the Foundation will undergo organizational adjustments, continue to strengthen community connections and support developers, and also commit to increasing transparency.
- Fund management method: These 50,000 ETH will be stored in a 3/5 multi-signature wallet.
- Operation test: The wallet has already conducted transaction tests on the lending protocol Aave.
- Official launch time: According to Ethereum Foundation member Hsiao-Wei Wang's statement, the wallet setup may still take a few days.
This amount of funds is equivalent to 18.5% of the total ETH held by the Ethereum Foundation, which shows the Foundation's determination to support the development of its own DeFi ecosystem.
The Foundation's financial situation and community pressure
According to Arkham data, the Ethereum Foundation's total ETH assets have decreased from 610,000 ETH in 2020 to only 260,000 ETH currently, equivalent to $894 million.
The decrease is due to factors such as payroll and hosting offline events, but it has also raised concerns among some community members about ETH selling pressure. Ethereum core developer Eric Conner believes that the Foundation's staking rewards are sufficient to cover its internal operating expenses, which will help alleviate market selling pressure and stabilize community confidence in the future.
Constant doubts, Vitalik steadfastly upholds his original 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 ETH's underperformance compared to BTC and SOL. They argue that blockchain competitors actively engage with regulators, thereby boosting market confidence and driving price increases.
In response, Vitalik stated that the Ethereum Foundation's mission is to focus on technical and ecosystem development, and to remain neutral, not participating in political or regulatory controversies, in order to ensure the credibility and long-term development direction of Ethereum.
Vitalik's stance has also received support from many industry figures, such as CryptoQuant founder Ki Young Ju, who praised him and the Foundation for prioritizing "value creation" over "chasing money" in the current hype around meme coins and celebrity/political involvement. This demonstrates the importance of Ethereum steadfastly upholding its core principles amidst market volatility.
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