As a researcher with extensive knowledge and years of immersion in the cryptocurrency realm, I have to say that Vitalik Buterin’s response to the allegations was not only clear but also comprehensive. His life experience, coupled with his deep understanding of Ethereum, allowed him to provide a detailed explanation of the Foundation’s financial practices and its contributions to the ecosystem.
In a vigorous rebuttal against claims that the Ethereum Foundation was recklessly disposing of its Ether (ETH) reserves, co-founder Vitalik Buterin forcefully refuted these accusations on platform X. To clarify the situation, Buterin offered comprehensive insights into the Foundation’s financial management strategies and its role in fostering the ecosystem.
The disagreement emerged following a user’s claim on platform X that Ethereum Foundation was “unloading” ETH, suggesting this practice has adversely affected ETH’s value. However, Buterin promptly responded on platform X to clarify these allegations, stating not only had he not personally sold any ETH recently, but his personal ETH holdings had actually grown in quantity.
Is The Ethereum Foundation Dumping ETH?
On October 26, 2024, he effectively refuted the rumors by saying, “I haven’t offloaded a single ETH during the last month, in fact, the amount I own has increased.” In response to additional questions regarding the ETH Foundation’s activities, Buterin explained the substantial costs the Foundation bears, which are vital for the growth and upkeep of the Ethereum network.
Via the Ethereum Foundation, researchers and developers who ensure Ethereum operates smoothly are rewarded with approximately 5 million ETH annually, which contributes to today’s low fees and fast transaction confirmation times under 30 seconds (thanks to EIP 1559). Buterin emphasized this is a significant accomplishment deserving of respect.
Additionally, Buterin expanded on the Foundation’s significant efforts, highlighting various main projects that demonstrate their dedication to technological progress and network safety. He specifically referred to the creation of zero-knowledge (zk) technology, a feature that allows private Ethereum usage, using the Railway project as an illustration.
Beyond this, Buterin talked about advancements in account abstraction technology, designed to streamline Ethereum user experiences by doing away with conventional seed phrases and minimizing risks similar to those experienced during the Sam Bankman-Fried (SBF) incident. This development will enable ordinary users to securely utilize ETH without the need for seedphrases or central points of failure akin to SBF’s model, as per Ethereum’s co-founder’s writing.
Additionally, Buterin emphasized the Foundation’s part in nurturing a global Ethereum community by organizing local events across the globe. He pointed out that these events sometimes understate the Foundation’s participation, but they are crucial for spreading information and promoting cooperation among developers and supporters.
Security and network reliability were other focal points of Buterin’s defense. He proudly stated that Ethereum has maintained zero downtime from denial-of-service (DoS) attacks and consensus failures since 2016. Furthermore, he credited the Foundation’s “various security work (internal dev and grants) that have prevented many losses of funds.”
In conclusion, Buterin highlighted the significant role that the Foundation plays within the larger Ethereum community. He specifically pointed out their creation of various libraries used across numerous applications such as wallets, DeFi apps, and more.
At press time, ETH traded at $2,521.
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2024-10-28 10:56