✨ Ethereum Foundation's $970 Million Treasury Revealed
posted 8 Nov 2024
The Ethereum Foundation has published a financial report detailing its assets, which amount to nearly $970 million. Of this, $788.7 million is held in cryptocurrencies, with ETH constituting 99.45% of the portfolio. Approximately $181.5 million is invested in conventional assets and cash reserves.
Breakdown of Ethereum Foundation's Funds. Source: report-2024
The Ethereum Foundation highlights its strong, long-term conviction in Ethereum's potential, which is why most of its assets remain in its native cryptocurrency. The Foundation aims to channel ETH into ecosystem development and the backing of socially impactful L2 initiatives.
A total of $22 billion is reserved across various protocols, affiliated treasuries, and DAOs, which collectively support the Ethereum network, now comprising over 20 dedicated participants.
Overview of treasury assets distribution within the Ethereum ecosystem. Source: report-2024
The report underscores the Ethereum Foundation's conservative treasury strategy, which involves periodic ETH sales to build a cash reserve as a precaution for market downturns.
The Foundation recently faced criticism over its practice of unannounced ETH sales, sparking concerns about transparency and potential centralization of the project. In response, the Ethereum Foundation published an in-depth report to restore investor trust.
The report includes details on expenditures, showing that the largest portion of funding is dedicated to ecosystem support and research and development. In the 2022–2023 period, nearly $497 million was allocated for these activities.
Distribution of extra ecosystem funding. Source: report-2024
Foundation management has promised to issue such reports annually to foster transparency and maintain accountability to the Ethereum community.
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