The Ethereum Foundation (EF) has introduced a more structured and transparent treasury policy, marking a strategic shift as it braces for what it calls a “pivotal” 18 months in the evolution of Ethereum.
🔒 New Treasury Approach Tied to Runway & Market Conditions
EF Director Hsiao-Wei Wang revealed on June 4 that the foundation currently has 2.5 years of financial runway, prompting a renewed focus on sustainability and responsible capital deployment.
Key policy changes include:
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Reassessing operating costs as a percentage of its treasury.
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Regularly reviewing runway projections.
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Factoring in market dynamics and community feedback.
“This policy reflects our conviction that 2025–26 are likely to be pivotal for Ethereum,” Wang said.
💸 Transparency & Trust After Ether Sales Backlash
The new strategy follows community criticism over recent unannounced ETH sales by the foundation, which many said eroded trust. In response, the EF will now publish:
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Quarterly and annual reports on its treasury status.
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Data on asset holdings, returns, and developments.
As of Oct. 31, 2024:
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EF held $970.2 million, including
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$788.7 million in crypto (81% ETH)
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$181.5 million in non-crypto assets
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🌐 Embracing DeFi for Strategic Yield
Breaking from its tradition of credible neutrality, the EF will now actively support select DeFi protocols that align with its values.
In February, the EF earmarked 45,000 ETH (worth $120M) to deploy across audited, permissionless DeFi platforms. Notable moves include:
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Supplying ETH to Aave, borrowing $2M in GHO stablecoins.
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Supporting Spark and Compound protocols.
This shift comes after criticism from DeFi pioneers like Kain Warwick (Infinex), who accused EF of being too hands-off and “anti-DeFi.”
⚙️ Internal Restructuring and ETH Underperformance
The EF also disclosed a restructuring of its internal dev team on June 2, which included layoffs. While details were not shared, the move suggests leaner operations amid Ethereum’s lagging performance this cycle.
While Bitcoin (BTC) and Solana (SOL) have recently hit new all-time highs, ETH remains down 46.5% from its November 2021 peak of $4,878.
The Ethereum Foundation’s proactive treasury management and renewed engagement with DeFi protocols could shape Ethereum’s trajectory during a crucial development window through 2026.
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