Ethereum Foundation Allocates $165 Million in ETH to Support DeFi Development! Vitalik: Continuing to Support Technological Innovation
The Ethereum Foundation has announced that it will allocate approximately $165 million, equivalent to 50,000 Ether (ETH), to support the development of DeFi, stating that it will continue to strengthen community connections and transparency within the Ethereum ecosystem.
Details of Fund Management Made Public to Ensure Security and Transparency
Ethereum co-founder Vitalik Buterin stated on Twitter on January 18 that the foundation will undergo organizational adjustments, continue to enhance community connections, and support developers, while also committing to increased transparency.
Fund Management Method: The 50,000 Ether (ETH) will be stored in a 3/5 multi-signature wallet.
Operational Testing: The wallet has already undergone transaction testing on the lending protocol Aave.
Official Activation Time: According to Ethereum Foundation member Hsiao-Wei Wang, the wallet setup may take a few more days.
This amount represents 18.5% of the total Ether (ETH) held by the Ethereum Foundation, demonstrating Ethereum’s commitment to supporting the development of its own DeFi ecosystem.
Ethereum Foundation member Hsiao-Wei Wang announces the commencement of multi-signature wallet transaction testing.
Foundation Financial Status and Community Pressure
According to data from Arkham, the total Ether holdings of the Ethereum Foundation have decreased from 610,000 Ether (ETH) in 2020 to just 260,000 Ether (ETH) currently, amounting to approximately $894 million.
The Ethereum Foundation currently holds only 260,000 Ether.
The reduction is attributed to expenses such as salary payments and organizing offline events, which has raised concerns among community members regarding selling pressure on Ether. Ethereum core developer Eric Conner believes that the foundation’s staking rewards are sufficient to cover internal operational expenses, which could alleviate market selling pressure and stabilize community confidence in the future.
Ethereum core developer Eric Conner urges the community not to worry.
Ongoing Criticism, Vitalik Stays True to Original Intent
Recently, some members of the Ethereum community criticized the foundation for its apparent lack of engagement and management, believing this to be one reason for Ether’s price underperformance compared to Bitcoin (BTC) and Solana (SOL). They argued that competing blockchain companies are actively engaging with regulatory bodies, thereby bolstering market confidence and driving price increases.
In response, Vitalik stated that the mission of the Ethereum Foundation is to focus on technology and ecological development while maintaining neutrality and not engaging in political or regulatory disputes, in order to ensure Ethereum’s credibility and long-term development direction.
Vitalik’s stance has garnered support from several industry figures, such as CryptoQuant founder Ki Young Ju, who praised him and the foundation for prioritizing “value creation” over “chasing money” amidst the current trend of celebrities and politicians profiting from meme coins. This underscores the importance of Ethereum’s commitment to its core principles amid market volatility.
CryptoQuant founder publicly praises Vitalik for staying true to his original intent.
(Vitalik: The leadership structure of the Ethereum Foundation will be adjusted and will not become a dominating force in the ecosystem.)
Risk Warning
Investing in cryptocurrencies carries high risks, and their prices can be highly volatile; you may lose your entire principal. Please assess risks carefully.
