Wednesday, the Ethereum Foundation published an updated cash policy, describing a series of new plans around tokens sales, Fiat purchases and transparency practices designed to ensure the long -term agency, sustainability and legitimacy “of the organization.
The EF, a Swiss non -profit organization, plays a central role in the Ethereum blockchain ecosystem. In addition to using researchers, manufacturers and community connections, the Foundation has obtained a great task of ether tokens (ETH) at Ethereum d’Ethereum which he uses to finance his operations and support other projects in the ecosystem.
On Wednesday, in a blog post, the foundation planned to appoint 15% of its treasure at operational expenses (“OPEX”) each year, with a 2.5 -year -old stamp kept at any time in reserves. “We intend to reduce annual OPEX almost linearly over the next five years, ending at a long -term basic line of 5%,” wrote the Foundation. “This policy reflects our conviction that 2025-26 is likely to be essential for Ethereum, justifying an increased concentration on critical deliverables.”
In addition to periodically selling some of its ETH token on the market, the Foundation has declared that it would occasionally diversify its assets on Fiat to ensure that it can continue to finance key ecosystem projects, whatever the conditions of the cryptographic market.
The Foundation stressed that decisions concerning the management of its treasure – including occasional STH sales – are taken with operational planning and risk attenuation. The Foundation said that its investments are not motivated by speculative objectives, but to guarantee that EF can continue to support the well -made ecosystem.
“We will frequently reallocate funds between protocols for reasons such as the evolution of market conditions, diversification or new performance opportunities,” wrote the foundation. “Withdrawals must be included in this context and not as anti-endorships.”
In addition, the Foundation has promised to publish quarterly financial reports to its board of directors, as well as an annual report, which has been made public in the past. On October 31, 2024, the EF shared that it had $ 970.2 million in treasury, down 39% compared to both the organization declared its financial classification.
Crypto foundations rich in chips like the Ethereum Foundation have been in the center of many largest controversies in the industry in the center. The foundations have immense power in the ecosystems they serve, but they are frequently criticized to have opaque operations, generous compensation packages and waves responsibilities.
Wednesday’s message comes in the middle of a broader thrust of the Ethereum community for transparency and foundations reform.
In 2024, a pair of researchers from the Ethereum Foundation was criticized for discreetly accepting the benefits of projects of projects based on Ethereum, pushing the entire organization in a calculation of conflicts of interest.
Ethereum also faced increased competition from other blockchains in the past year, and some in the community have pushed to the Ethereum Foundation to act with more urgency to push the technological development of the ecosystem.
Earlier this week, the Foundation shared that she had dismissed certain members as part of a restructuring of her research arm.
Read more: The Ethereum Foundation sets up personnel in the middle of the R&D restructuring
