As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find the Ethereum Foundation’s annual financial report for 2024 a breath of fresh air. Transparency is crucial in this industry, and the EF’s commitment to it is commendable.
Today, I’m sharing some exciting insights from the Ethereum Foundation (EF)’s recently unveiled annual financial report. This report underscores their significant assets and a strong dedication towards upholding transparency and ensuring long-term viability for the crypto community.
Ethereum Foundation Holdings
By October 31, 2024, it was revealed that the EF’s treasury contains around $970.2 million. This sum is divided into two main categories: $788.7 million invested in crypto assets, and $181.5 million allocated towards non-crypto investments and assets.
To highlight, it’s worth mentioning that almost all of the EF’s cryptocurrency assets are Ethereum (ETH), accounting for approximately 0.26% of the entire Ethereum in circulation.
According to their report, the EF advocates for a cautious approach to managing the treasury, aimed at navigating market fluctuations and maintaining access to funds even during prolonged market slumps. This is what they highlighted in their document.
We opt to keep a significant portion of our funds in Ether (ETH), reflecting the Ethereum Foundation’s confidence in Ethereum’s future prospects. Our ETH holdings symbolize our long-term outlook on this cryptocurrency.
To maintain this strategy, the EF regularly converts parts of its Ethereum (ETH) assets into fiat currency when market conditions are favorable (bullish). This allows them to have funds available for expenses during unfavorable or downturn periods (bearish phases).
1/ Introducing the Ethereum Foundation Report, 2024 Edition. Learn more about EF, our recent work, Ethereum’s ecosystem of funders, new organizations and policies. The full report is here:
— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) November 8, 2024
It’s important to point out that the EF’s openness concerning their motivation is significant, given the previous criticism and community responses about big transactions and sudden ETH sales by the foundation, which lacked preliminary notification. This has sparked demands for more transparent communication in the past.
Tightening Conflict Of Interest Rules For Staff Members
As a crypto investor, I’ve noticed that the Ethereum Foundation has taken steps to ensure transparency within their team. In line with the new policy, individuals working for the Foundation, known as “EFers,” are allowed to take on external projects. However, it’s crucial that we disclose these engagements and seek approval from our team leads before proceeding. This way, we can maintain trust and integrity within our community.
For engagements worth more than $25,000 per year, it’s compulsory to undergo a review by an internal team. The policy strictly disallows EF staff from receiving payment in the form of unliquid assets with unpredictable market value, like advisory tokens for projects yet to launch, unless there’s a very unusual circumstance allowing for it.
The report further underscores that the main objective of the Ethereum Foundation (EF) is to finance and bolster infrastructure for the Ethereum network by providing public goods. Notably, expenditures in the year 2023 totaled $47.4 million on newly established institutions geared towards enhancing the ecosystem – marking a substantial rise from the $28.6 million spent in 2022.
Furthermore, the Ethereum Foundation increased its investment in Layer 1 research and development to $34.7 million, a rise from $32.1 million in the last fiscal year. Aya Miyaguchi, Ethereum Foundation’s executive director, underscored their long-term strategy, expressing: “We have focused our resources on a sustained plan for growth and innovation.
EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem. We’re more committed than ever to planting seeds that may only mature years down the line, ensuring Ethereum’s resilience and collaborative growth.
Featured image created with DALL-E, Chart from TradingView
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2024-11-09 09:42