The Ethereum Foundation (EF) released its annual financial report earlier today, revealing significant holdings and a commitment to transparency and long-term sustainability.
Ethereum Foundation Holdings
As of October 31, 2024, EF disclosed that its treasury contained approximately $970.2 million, of which $788.7 million was in crypto assets and $181.5 million was allocated to investments and non-crypto assets.
It is worth noting that approximately 99.45% of EF’s cryptocurrency holdings are in Ethereum (ETH), which represents 0.26% of the total circulating supply of ETH.
In it a reportThe European Fund emphasized a conservative treasury management policy designed to counter market fluctuations and ensure the availability of resources during periods of extended market recession. In the report, they noted:
We have chosen to hold the majority of our treasury in ETH. EF believes in the potential of Ethereum, and our ETH holdings represent this long-term perspective.
To maintain this approach, EF “periodically” sells portions of its ETH holdings, building up fiat reserves during bull market conditions to fund spending needs during bear phases.
1/ Introducing the Ethereum Foundation Report, 2024 Edition. Learn more about EF, our recent work, the Ethereum financier ecosystem, and new organizations and policies. Full report here: https://t.co/koL7Et0n6B pic.twitter.com/uhbzsngaWD
– Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) November 8, 2024
It is worth noting that EF’s transparency around this motive comes on the back of previous scrutiny and community backlash regarding large transactions and sales of ETH by the institution without prior notice, which has led to calls for clearer communication.
Tightening conflict of interest rules for employees
The Ethereum Foundation has also introduced enhanced measures to address potential conflicts of interest among its team members. According to the updated policy, EF employees, referred to as “EFers,” may participate in outside work but must disclose their participation and seek approval from their team leaders.
For entries with a total value exceeding $25,000 per year, review by an internal discussion group is required. The policy specifically prohibits EF employees from accepting compensation in illiquid assets with uncertain market value, such as consulting token packages for pre-launch projects, unless a rare exception is granted.
The report also highlights that EF’s primary mission is to fund and support the public benefits of the Ethereum network. Expenditures in 2023 included $47.4 million earmarked for “new enterprises” aimed at strengthening the ecosystem, a significant increase from $28.6 million in 2022.
In addition, EF invested $34.7 million in Tier 1 research and development, compared to $32.1 million the previous year. Aya Miyaguchi, Executive Director of the Ethereum Foundation, emphasized the foundation’s long-term approach, saying:
EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem. We are more committed than ever to planting seeds that may not mature for years, ensuring Ethereum’s resilience and collaborative growth.
Featured image created with DALL-E, chart from TradingView
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