The Ethereum Foundation (EF) has recently unveiled its annual financial report, showcasing significant holdings and a dedication to transparency and long-term sustainability. The report, released on November 8, 2024, revealed that the EF’s treasury currently holds approximately $970.2 million, with $788.7 million in crypto assets and $181.5 million allocated to non-crypto investments and assets.
One of the most notable aspects of the report is that nearly 99.45% of the EF’s crypto holdings are in Ethereum (ETH), representing 0.26% of the total circulating supply of ETH. The foundation emphasized a conservative treasury management policy aimed at weathering market volatility and ensuring the availability of resources during extended market downturns. The EF stated, “We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective.”
To maintain this approach, the EF periodically sells portions of its ETH holdings, accumulating fiat reserves during bullish market conditions to finance spending needs during bearish phases. This strategy reflects the foundation’s commitment to supporting a sustainable and open ecosystem for Ethereum.
In addition to its financial holdings, the Ethereum Foundation introduced enhanced measures to address potential conflicts of interest among its team members. The updated policy requires EF staff members, known as “EFers,” to disclose any external work engagements and seek approval from their team leads. For engagements exceeding $25,000 annually, a review by an internal discussion group is mandated. The policy also prohibits EF staff from accepting compensation in illiquid assets with uncertain market value, unless a rare exception is granted.
The EF’s primary mission remains focused on funding and supporting public goods for the Ethereum network. In 2023, the foundation allocated $47.4 million to “new institutions” aimed at boosting the ecosystem, a significant increase from $28.6 million in 2022. Additionally, $34.7 million was invested in Layer 1 research and development, up from $32.1 million in the previous year.
Aya Miyaguchi, the executive director of the Ethereum Foundation, emphasized the foundation’s long-term approach, stating, “EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem. We’re more committed than ever to planting seeds that may only mature years down the line, ensuring Ethereum’s resilience and collaborative growth.”
The EF’s transparency about its motives and financial holdings comes in response to past scrutiny and community reactions regarding large transactions and ETH sales without prior notice. The foundation’s commitment to transparency and sustainability reflects its dedication to fostering a strong and resilient ecosystem for Ethereum.