- The Ethereum Foundation is overhauling its treasury strategy following community criticism over unexpected ETH sell-offs that damaged ecosystem trust.
- The organisation will publish quarterly and annual reports detailing asset allocations, investment returns, and operational developments to increase transparency.
- The EF plans to use its ETH reserves more dynamically, including solo staking and depositing wrapped Ether into DeFi lending protocols for yield generation
After facing scrutiny for recent sell-offs, the Ethereum Foundation (EF) is revamping its treasury strategy.
In a blog post detailing the organisation’s new direction, the EF highlighted its aim to synchronise short-term actions with Ethereum’s long-term vision. What this means is that the organisation will try to provide more decisive ecosystem support during market downturns or critical phases, which it explicitly terms “pivotal”.
The EF director, Hsiao-Wei, stated that the next 18 months will be crucial for the entire ecosystem, and will require “enhanced focus on critical deliverables”.
The EF stated in its announcement:
The Ethereum Foundation (EF) exists 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.
Hsiao-Wei, Director at Ethereum Foundation.Related: Ethereum’s EIP-7702 Upgrade Exploited by “CrimeEnjoyor” Wallet-Sweeping Scam
Changes to Ethereum’s Transparency Practices
The Foundation’s updated strategy arrives in response to vocal community backlash after the EF unexpectedly liquidated portions of its Ether holdings.
These moves, critics rightfully argued, damaged the trust in the ecosystem. Not only general dissatisfaction, but there’s also the issue of rising competition from networks like Solana, or literally any other high-cap, high-performance layer-1.
So, in an attempt to increase transparency, the EF will begin to publish quarterly and annual reports, clearly outlining its asset allocations, investment returns, and notable operational developments.
Read more: Ripple CEO Denies Reported US$4–$5B Circle Acquisition Amid IPO Plans
The blog post also reads that EF intends to leverage its ETH reserves more dynamically, including engaging directly with the decentralised finance (DeFi) space through strategies like solo staking and depositing wrapped Ether (wETH) into lending protocols for yield.
The organisation also wants to engage with other elements in the DeFi world, including real-world assets (RWA) to maximise returns on its substantial reserves.
At the end of October, the EF treasury held approximately US$970.2M (AU$1.49B), comprising US$788.7M (AU$1.21B) in crypto assets, obviously most of it in ETH, and US$181.5M (AU$278M) in non-crypto holdings.
Ethereum is currently trading at US$2.4k (AU$3.7k), a 6.9% decrease in the last 24 hours, as per data from CoinGecko and TradingView.
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