Marc Zellerfounder of the Aave Chan Initiative (ACI), has called for the dissolution of the ethereum FoundationThis came after a recent transaction suggested the Foundation was once again looking to sell the maximum amount of eth.
ethereum Foundation Should Disband Following Verge Purge and Updates
In an x (formerly twitter) x.com/lemiscate/status/1827245352337989711″ rel=”nofollow” target=”_blank”>mailZeller commented that the ethereum Foundation should be defunded and dissolved once Purge and Verge Updates The cryptocurrency founder suggested that the Foundation's budget was too outrageous, as he questioned why the foundation needed a $100 million annual budget. He added that the Geth team is paid a “meager” salary despite the “critical work” they do on the foundation. ethereum Ecosystem.
Zeller's comments were a direct response to a x.com/AyaMiyagotchi/status/1827219654999470258″ rel=”nofollow” target=”_blank”>Publication x by ethereum Foundation Executive Director, crypto-fund/” rel=”nofollow noopener” target=”_blank”>Aya Miyagotchiin which he revealed that the Foundation’s recent 35,000 eth ($94.07 million) deposit into Kraken was part of its treasury management activities. He stated that the ethereum Foundation has an annual budget of $100 million, and that most of this money goes towards grants and salaries.
He suggested that the ethereum Foundation has always had to sell a significant amount of its ethereum holdings because some of the grant and salary recipients can only accept fiat money. Meanwhile, he also revealed why they were undertaking such treasury activity, noting that they had not been able to do so before due to regulatory complications.
The regulatory complication he was referring to is the crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC’s%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.” rel=”nofollow noopener” target=”_blank”>United States Securities and Exchange Commission (SEC) investigation into whether eth was a security, although this investigation was eventually closed.
As expected, the ethereum Foundation's deposit of $94 million worth of eth on Kraken sparked fears of a sell-off, which could significantly impact ethereum/ethereum-price-headed-to-4000/#:~:text=crypto%20analyst%20Linda%20has%20made,to%20such%20a%20price%20surge.” rel=”nofollow noopener” target=”_blank”>eth PriceHowever, Miyagotchi assured the community that they had no intention of selling all of those tokens at once. He said, “From now on there will be planned and gradual sales.”
The Foundation's budget is not sustainable
ethereum/pectra-upgrade-on-ethereum-will-it-be-the-catalyst-to-break-above-all-time-highs/” rel=”nofollow noopener” target=”_blank”>Cryptocurrency researcher Ignas x.com/DefiIgnas/status/1827304634379100371″ rel=”nofollow” target=”_blank”>noted that the ethereum Foundation will spend all of its eth holdings within eight years if it continues to operate on an annual budget of $100 million. ethereum-foundation” rel=”nofollow noopener” target=”_blank”>Data from Arkham Intelligence on-chain analytics platform shows that the Foundation holds 273,776 eth ($748.88 million). Ignas added that if the Foundation wants to fund its operations for much longer, it will need the price of eth to rise or start to rise. staking your eth tokens to obtain returns.
The cryptocurrency researcher also revealed that most of the ethereum Foundation Expenses According to its 2021 financial report, which appears to be the most up-to-date, only 10% of the Foundation's expenses went to salaries and maintenance of the Foundation. In line with this, Zeller x.com/lemiscate/status/1827311186120937886″ rel=”nofollow” target=”_blank”>called for the ethereum Foundation to cut “all” grants from its budget.
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