The Ethereum Foundation, the organization overseeing the development of the second-largest blockchain by market capitalization, is allocating 50,000 ether (ETH) worth around $165.3 million at the time of writing to participate in the decentralized finance (DeFi) ecosystem.
The move will see the Foundation establish a 3 out of 5 multi-signature wallet through Safe, which the organization says “has proven to be secure and has an excellent user experience.” An initial test transaction was sent to the Aave lending protocol, one of the largest in the Ethereum ecosystem behind the liquid staking protocol Lido.
Participating in the DeFi ecosystem could help the Ethereum Foundation treasury grow after it was reduced by 39% in less than three years to 970.2 million dollars as of October 31. The nonprofit organization holds most of its treasury in ether, which recently fell to a four-year low. against bitcoin.
According to Ethereum co-founder Vitalik Buterin, the organization has so far avoided staking its ETH to generate revenue by staking rewards due to regulatory and neutrality concerns. With the current CESR Composite Ether Staking Rate, you could generate a 3.31% return on your ether holdings.
Over the weekend, Vitalik Buterin confirmed that the nonprofit is undergoing major changes to its leadership structure, a process that “has been underway for almost a year.”
In the stated objectives, Buterin noted that the move was aimed at improving technical expertise within the Ethereum Foundation’s top brass, improving communications and links between its leadership and Ethereum ecosystem actors, and more actively supporting creators. of applications, among other things.
He also noted that the Foundation is not seeking to “execute some kind of ideological spin” or aggressively pressure the regulator, nor is it seeking to become a highly centralized organization.
