Emily Walker
Earlier today, the Ethereum Foundation (EF) released its yearly financial overview, highlighting significant assets and its dedication to maintaining transparency and sustainable growth.
Holdings of the Ethereum Foundation
As of October 31, 2024, the EF reported a treasury totaling around $970.2 million, consisting of $788.7 million in crypto assets and $181.5 million in traditional investments.
Remarkably, almost 99.45% of the EF’s cryptocurrency assets are held in Ethereum (ETH), which constitutes 0.26% of the overall circulating supply of ETH.
The EF’s latest report outlined a cautious financial management strategy that aims to endure market fluctuations and secure resources during prolonged downturns. The report states:
Our preference is to retain a majority of our treasury in ETH. We have faith in Ethereum’s future, which our ETH holdings reflect.
To implement this strategy, the EF “occasionally” sells parts of its ETH reserves to build fiat currency reserves during market upswings, which helps fund operations in bearish intervals.
1/ The Ethereum Foundation Report, 2024 Edition is here. Discover more about EF, our efforts, Ethereum’s funding ecosystem, and more! Full report: pic.twitter.com/uhbzsngaWD
— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) November 8, 2024
This transparency comes after previous criticism and community concerns regarding the Foundation’s lack of prior announcements for major ETH transactions, which called for improved communication.
Stricter Conflict of Interest Policies for Staff
Additionally, the Ethereum Foundation has established stricter rules regarding potential conflicts of interest for its employees. The updated guidelines state that EF staff, known as “EFers,” can pursue external employment but are required to disclose their activities and obtain approval from their supervisors.
Engagements valued over $25,000 annually will undergo a review by an internal panel. The policy prohibits staff members from accepting non-liquid assets with unclear market values as compensation unless a rare exemption is made.
The report underscores that the EF’s main goal is to fund and support public goods within the Ethereum network. In 2023, the organization allocated $47.4 million to “new institutions” aimed at fostering the ecosystem, a notable rise from $28.6 million in 2022.
Furthermore, the EF invested $34.7 million in Layer 1 research and development, increasing from $32.1 million the previous year. Aya Miyaguchi, the foundation’s executive director, spoke on their forward-thinking strategy, asserting:
Our long-term vision enables us to nurture a sustainable and open ecosystem. We are more committed than ever to planting the seeds for growth that may take time to bear fruit, ensuring the robustness and collaborative progress of Ethereum.
Image created with DALL-E; Chart sourced from TradingView.