In a forceful response to accusations that the ethereum Foundation has been irresponsibly selling its eth holdings, co-founder Vitalik Buterin firmly denied the allegations against x. In an explanation, Buterin provided detailed information about the Foundation's financial practices and its contributions. to the ecosystem. .
The controversy arose after an x user accused the ethereum Foundation of “dumping” eth, implying that such actions have negatively impacted the price of eth. Buterin quickly took to x to address these concerns, emphasizing that not only had he not sold any eth recently, but the amount of eth he owned had actually increased.
Is the ethereum Foundation dumping eth?
On October 26, 2024, he x.com/VitalikButerin/status/1849965496151789949″ target=”_blank” rel=”noopener nofollow”>provided a clear rebuttal to the rumors, saying: “I haven't sold a single eth in the last month? The amount of eth I have has actually increased.” Answering further questions about the eth Foundation's actions, Buterin explained the significant expenses incurred by the Foundation, which are crucial to the development and maintenance of the ethereum network.
“The eth Foundation is paying researchers and developers who are responsible for (making) ethereum not waste 5 million eth/year as proof of work, for its fees to be low today, and for its transactions to be listed in less than 30 seconds on instead of 1-30. minutes (EIP 1559), show some respect,” Buterin said.
Buterin elaborated on the Foundation's contributions, detailing several key initiatives that underscore its commitment to technological advancement and network security. He mentioned the development of zero-knowledge (zk) technology, which facilitates the private use of eth, and cited projects like Railway as examples.
Additionally, Buterin discussed progress in account abstraction technology, which aims to simplify user interactions with ethereum by eliminating the need for traditional seed phrases and mitigating centralized points of failure reminiscent of the Sam Bankman-Fried incident. (SBF). This innovation “will allow standards to use eth securely without seed phrases *or* SBF-style central points of failure,” the eth co-founder wrote.
Buterin also highlighted the Foundation's role in fostering a global ethereum community through local events around the world. He noted that many of these events often downplay the Foundation's involvement, but play an important role in spreading knowledge and fostering collaboration between developers and enthusiasts.
Network security and reliability were other central points of Buterin's defense. He proudly stated that ethereum has maintained zero downtime due to denial of service (DoS) attacks and consensus failures since 2016. Additionally, he credited the Foundation's “various security works (internal development and grants) that have avoided many losses of funds.
Buterin concluded by emphasizing the Foundation's contributions to the broader ethereum ecosystem, including “libraries in all types of code it uses (wallets, defi applications…).”
At press time, eth was trading at $2,521.
Featured image created with DALL.E, chart from TradingView.com
