The ethereum Foundation (EF), a non-profit organization that supports the ethereum blockchain network, has established a multisig wallet to participate in the decentralized finance (DEFI) ecosystem.
In line with this, the organization has initiated a transfer of 50,000 eth worth approximately $165.3 million into the wallet.
The new multisig wallet
According to January 20 x <a target="_blank" href="https://x.com/icebearhww/status/1881413731780821405″ target=”_blank” rel=”noopener” data-wpel-link=”external”>mail By Hsiao-Wei Wang, recently appointed to a leadership role at the entity, the wallet uses a 3 of 5 multisig setup and is managed through SAFE, formerly known as Secure Gnosis.
The announcement described that Safe has proven to be safe while providing “a great user experience.” An initial test transaction It has also been submitted to AAVE, one of the largest lending protocols within the ethereum ecosystem.
This development comes as the foundation faces long-standing concerns regarding its lack of transparency, particularly in its management of the Treasury.
The EF's frequent sales of eth, ostensibly to cover expenses and operating costs, have also come under fire for contributing to pressure on the asset. This has resulted in suggestions that the nonprofit should explore alternatives, such as staking or deploying a portion of its eth holdings on-chain to generate returns and meet its financial needs.
Participating in the Defi ecosystem could offer an avenue to boost the establishment's treasury, which, over the past three years, has shrunk by 39% to $970.2 million as of October 31, 2024.
A financial report published last year revealed that $788.7 million, or 81.3% of its total treasury, is held in cryptocurrencies, with 99.45% of that amount in eth.
Despite these important properties, ethereum co-founder Vitalik Buterin <a target="_blank" href="https://x.com/VitalikButerin/status/1881298926650929415″ target=”_blank” rel=”noopener” data-wpel-link=”external”>revealed that the organization has refrained from staking its eth for staking rewards due to concerns over regulatory implications, maintaining neutrality, and the potential challenge of taking parts in the event of a network hard fork.
Leadership reforms
In recent weeks, several prominent crypto commentators have raised new issues, pointing to ethereum's poor market performance and increasing competition from Solana as factors warranting scrutiny of the foundation's leadership.
Buterin has acknowledged these concerns, <a target="_blank" href="https://x.com/VitalikButerin/status/1880635379771904423″ target=”_blank” rel=”noopener” data-wpel-link=”external”>confirming Those major changes are underway to reshape the group's leadership structure.
He explained that the planned reforms aim to improve the technical expertise of the Foundation's senior leadership, strengthen communication and collaboration with key participants in the ethereum ecosystem, and provide more active support for application developers.
He also emphasized that the EF does not intend to undergo an ideological shift, aggressively pressure regulators or move towards a highly centralized governance model.
Additionally, ethereum co-founder Joseph Lubin <a target="_blank" href="https://x.com/ethereumJoseph/status/1880616193641640330″ target=”_blank” rel=”noopener” data-wpel-link=”external”>proposed A dual leadership structure for your future direction. He suggested ethereum developer Danny Ryan and Jérôme de Tychey, president of ethereum France, as candidates to balance technical competence with business strategy.
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