The Ethereum Foundation (EF) is tightening its financial strategy with a newly structured treasury policy aimed at improving transparency, operational efficiency, and long-term sustainability as it braces for what it calls a “pivotal” 18 months ahead for the Ethereum ecosystem.
In a recent statement, EF director Hsiao-Wei Wang revealed that the Foundation currently has just 2.5 years of financial runway left. To mitigate this, EF will now link its treasury management directly to its operational costs and cash needs, adjusting regularly in response to market movements and input from the Ethereum community.
Announcing the Ethereum Foundation Treasury Policyhttps://t.co/bU566m1zX5
— Ethereum Foundation (@ethereumfndn) June 4, 2025
The move comes amid backlash from the crypto community over the Foundation’s recent unexpected Ether (ETH) sales — transactions that some critics argued shook confidence in the organization. In response, the EF is committing to increased financial transparency, pledging to release quarterly and annual reports that detail its asset breakdown, investment performance, and major updates.
As of October 31, 2024, the Ethereum Foundation reported a treasury of approximately $970.2 million. Of this, $788.7 million was held in cryptocurrencies, with ETH accounting for over 81% of that amount. The remaining $181.5 million was in non-crypto assets. Since then, ETH has declined by around 1.8%, according to data from CoinGecko.
The Foundation is changing its neutral stance and will engage with decentralized finance (DeFi) protocols to generate acceptable returns on its assets. It will only interact with permissionless, immutable, and fully audited platforms, adhering to its “Defipunk principles.”
In February, the Foundation allocated 45,000 ETH—then valued at $120 million—to be deployed across various DeFi ecosystems. According to Aave founder Stani Kulechov, the EF has already used part of this allocation to supply liquidity and borrow $2 million worth of GHO, Aave’s stablecoin.
As part of its broader operational overhaul, the EF confirmed a restructuring of its internal development team on Wednesday. While the organization has not disclosed the number of team members laid off, the move is part of a larger strategy to redeploy resources more efficiently across priority areas.
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