5-6-2025 – The Ethereum Foundation has unveiled a bold and transparent overhaul of its treasury strategy, aiming to fortify its financial resilience as it braces for a transformative 18-month period. With a renewed focus on aligning its Ether reserves and sales with operational demands, the Foundation is charting a course to ensure stability while addressing community concerns over recent financial decisions.
Hsiao-Wei Wang, a director at the Foundation, revealed on 4 June that its current reserves provide only a 2.5-year runway, underscoring the urgency of prudent resource allocation. “The next 18 months will be critical for Ethereum’s evolution,” Wang stated, emphasising the need for disciplined deployment of funds to support key initiatives and bolster ecosystem growth. The Foundation’s treasury, valued at $970.2 million as of 31 October, comprises $788.7 million in cryptocurrencies—over 81% of which is held in ETH—and $181.5 million in non-crypto assets. Despite a recent 1.8% dip in ETH’s value, as reported by CoinGecko, the Foundation remains steadfast in its commitment to long-term strategic alignment.
To enhance transparency and rebuild trust following criticism over unannounced ETH sales, the Foundation has pledged to release quarterly and annual reports detailing its asset holdings, investment outcomes, and significant developments. This move addresses community discontent, particularly from those who argued that recent disposals of ETH—currently priced at $2,606—eroded confidence in the Foundation’s stewardship.
In a notable shift, the Foundation is deepening its engagement with decentralised finance (DeFi) protocols, aiming to generate sustainable returns while championing what it terms “Defipunk principles”—a nod to immutable, rigorously audited platforms. In February, it allocated 45,000 ETH, valued at $120 million at the time, to various DeFi initiatives. Among these, the Foundation has supplied ETH to Aave’s lending protocol, borrowing $2 million in GHO stablecoin, as confirmed by Aave founder Stani Kulechov on 29 May. Other protocols, including Spark and Compound, have also benefited from the Foundation’s support, marking a departure from its historical stance of neutrality to avoid favouring specific projects. This pivot has not been without controversy, with critics like Infinex founder Kain Warwick previously accusing the Foundation of neglecting DeFi innovation.
Internally, the Foundation underwent a restructuring of its development team on 2 June, resulting in an undisclosed number of layoffs. While details remain sparse, the move reflects a broader effort to streamline operations amid a challenging market environment. ETH’s performance has lagged behind competitors like Bitcoin ($104,726) and Solana ($153.08), which have recently hit record highs. By contrast, ETH remains 46.5% below its November 2021 peak of $4,878, adding pressure to the Foundation’s strategic recalibration.
