The ethereum Foundation (EF) today released its annual financial report, revealing substantial holdings and a commitment to transparency and long-term sustainability.
ethereum Foundation Holdings
As of October 31, 2024, the EF revealed that its treasury has approximately $970.2 million, with $788.7 million in crypto assets and $181.5 million allocated to non-crypto investments and assets.
Notably, nearly 99.45% of EF's cryptocurrency holdings are in ethereum (eth), representing 0.26% of the total circulating supply of eth.
in your ethereum.foundation/report-2024.pdf” target=”_blank” rel=”noopener nofollow”>reportThe FA emphasized a conservative treasury management policy designed to weather market volatility and ensure resource availability during prolonged market shocks. They noted in the report:
We choose to keep the majority of our treasury in eth. The EF believes in the potential of ethereum and our eth holdings represent that long-term perspective.
To sustain this approach, the EF “periodically” sells portions of its eth holdings, building up fiat reserves during bull market conditions to fund spending needs during bear phases.
<blockquote class="twitter-tweet”>
1/ Introducing the ethereum Foundation Report, 2024 edition. Learn more about EF, our recent work, the ethereum funder ecosystem, new organizations and policies. The full report is here: https://t.co/koL7Et0n6B pic.twitter.com/uhbzsngaWD
— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) twitter.com/AyaMiyagotchi/status/1854718486213542306?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>November 8, 2024
It is worth noting that EF's transparency on this issue comes in the context of past scrutiny and community reactions regarding large transactions and sales of eth by the foundation without prior notice, leading to calls for a clearer communication.
Stricter conflict of interest rules for staff members
The ethereum Foundation also introduced enhanced measures to address potential conflicts of interest among its team members. Under the updated policy, EF staff members, known as “EFers,” can participate in outside work, but must disclose their participation and seek approval from their team leaders.
For commitments with a total value greater than $25,000 per year, an internal focus group review is required. The policy specifically prohibits EF staff from accepting compensation in illiquid assets with uncertain market value, such as advisory token packages for pre-launch projects, unless a rare exception is granted.
The report also highlights that the primary mission of the EF is to finance and support public goods for the ethereum network. Spending in 2023 included $47.4 million dedicated to “new institutions” aimed at boosting the ecosystem, a significant increase from $28.6 million in 2022.
Additionally, the Environmental Fund invested $34.7 million in Layer 1 research and development, up from $32.1 million the previous year. Aya Miyaguchi, CEO of the ethereum Foundation, emphasized the foundation's long-term focus, stating:
EF's long-term thinking keeps us focused on supporting an open and sustainable ecosystem. We are more committed than ever to planting seeds that may only mature years later, ensuring the resilience and collaborative growth of ethereum.
Featured image created with DALL-E, TradingView chart
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
