The Ethereum Foundation published a treasury policy updated on Wednesday, describing a series of new plans around tokens sales, fiduciary purchases and transparency practices designed to guarantee the “agency, sustainability and long -term legitimacy of the organization.”
The EF, a Swiss non -profit organization, plays a central role in the Ethereum blockchain ecosystem. In addition to using community researchers, builders and links, the Foundation received a great Ether Treasury (ETH) in Ethereum’s Genesis that it uses to finance its operations and support other projects in the ecosystem.
In a blog post on Wednesday, the Foundation declared that it plans to appoint 15% of its treasure to operating expenses (“OPEX”), with a 2.5 -year shock absorber at all times in its reservations. “We intend to reduce the annual OPEX approximately in the next five years, ending a 5% long -term baseline,” the Foundation wrote. “This policy reflects our conviction that it is likely that 2025-26 are fundamental for Ethereum, which guarantees an improved approach to critics.”
In addition to periodically selling some of its tokens ETH in the market, the Foundation said that occasionally will diversify its participations in Fiat to ensure that they can continue financing key ecosystems projects, regardless of cryptography market conditions.
The Foundation emphasized that decisions on the management of its treasure, including occasional ETH sales, are taken in mind with operational planning and risk mitigation. The Foundation declared that its investments are not promoted by speculative objectives, but to ensure that EF can continue to support the ecosystem in the future.
“We will often reallocate the funds between the protocols for reasons such as changing market conditions, diversification or new performance opportunities,” the Foundation wrote. “Withdrawals must be understood in this context and not as antiding.”
In addition, the Foundation promised to publish quarterly financial reports to its Board, 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 the Treasury, 39% less than the previous time, the organization reported its financial classification.
The cryptographic foundations rich in tokens such as the Ethereum Foundation have been, for years, in the center of many of the largest controversies in the industry. The bases have immense power within the ecosystems they serve, but are often criticized for having opaque operations, generous compensation packages and vague responsibilities.
Wednesday’s publication occurs in the midst of a broader impulse of the Ethereum community for transparency and reform of the Foundation.
In 2024, a couple of researchers from the Ethereum Foundation were criticized for silently accepting the tokens allocations of Ethereum headquarters, which leads the entire organization to a calculation of conflicts of interest.
Ethereum has also faced greater competition from other blockchains during the last year, and some within the community have pressed so that the Ethereum Foundation acts more urgently in promoting the technological development of the ecosystem.
Earlier this week, the Foundation shared that it had fired some members as part of a restructuring of their research arm.
Read more: Ethereum Foundation says goodbye to some personnel in R&D restructuring.
