Justin Sun proposes plan to take Ethereum to $10,000

Key takeaways

Sun's plan proposes stopping eth sales to reduce selling pressure in the market.
The plan also calls for reducing EF's staff and raising salaries for remaining employees.

Tron blockchain founder Justin Sun on Wednesday published a plan outlining how he would manage the ethereum Foundation (EF) and the ethereum network if he were in charge. Sun said his plan could boost the price of ether at $10,000.

Sun's plan calls for an immediate three-year suspension of all eth sales by the foundation. The Tron founder suggests covering operating costs through DeFi activities, such as lending eth on platforms like Aave, staking eth, and borrowing stablecoins.

“EF will immediately stop selling eth for at least three years,” Sun <a target="_blank" class="text-text-neutral-tertiary underline cursor-pointer" href="https://x.com/justinsuntron/status/1881999625990836229″ target=”_blank” rel=”noopener nofollow noreferrer”>fixed. “This ensures that the supply of eth remains intact, aligning with our deflationary objectives and bolstering market confidence.”

The proposal includes the implementation of taxes on all layer 2 projects, with a goal of $5 billion in annual revenue. to be used for buybacks and burning of eth. Sun is also advocating for substantial staff reductions at the foundation, while increasing salaries for remaining employees. The goal is to create a more efficient and performance-oriented organization.

Reducing node rewards and improving fee burning mechanisms are also part of the plan, which Sun believes would maintain deflationary pressure on the eth supply.

The plan focuses on redirecting resources to focus exclusively on ethereum development, prioritizing scalability, security and adoption, according to Sun. It projects that the changes could push eth prices above $4,500 within the first week of implementation and ultimately reach $10,000.

ethereum Foundation Explores DeFi Options

EF faces growing criticism for repeatedly selling eth to fund operations instead of adopting betting or DeFi strategies. This has led to accusations that EF is misaligned with the ethereum ecosystem and neglecting DeFi.

<a target="_blank" href="https://x.com/lookonchain/status/1881289250018378185″ target=”_blank” rel=”nofollow noopener noreferrer”>Data from Lookonchain shows that the foundation has sold 4,666 eth (approximately $13 million) since the beginning of 2024.

Addressing the growing concerns, ethereum co-founder Vitalik Buterin explained that historical regulatory uncertainties and the need to maintain neutrality prevented EF from staking. However, Buterin noted that regulatory concerns have diminished and the Environmental Fund is now exploring ways to minimize the question of neutrality.

As part of a strategic push towards DeFi, the foundation plans to allocate up to 50,000 eth to a newly established multi-signature wallet. eth will be used to participate in various DeFi activities on ethereum network, with a test transaction already completed on the lending platform Ghost.

ethereum Foundation Treasury Update

The ethereum Foundation (<a target="_blank" href="https://twitter.com/ethereumfndn?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@ethereumfndn) has created a new <a target="_blank" href="https://twitter.com/safe?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@sure Multi-signature wallet 3 out of 5.

The wallet address is 0x9fC3dc011b461664c835F2527fffb1169b3C213e

An operation has been started to send 50,000 eth there, but be patient; due to delays in signing,… pic.twitter.com/sIkAlH8ROf

— hww.eth (@icebearhww) <a target="_blank" href="https://twitter.com/icebearhww/status/1881413731780821405?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>January 20, 2025

The EF is undergoing a leadership restructuring to improve technical expertise, communication, speed of execution and support for application developers, Buterin shared in a previous statement. The restructuring also aims to expand the use of decentralized services and <span class="issue-underline underline decoration-2 underline-offset-4 transition decoration-border-brand-default hover:bg-bg-brand-light-default" data-issueid="7b663430-7056-4a90-b0e0-2b64aa7bda06" aria-label="open issue for the following text privacy tech” data-testid=”issue-underline:undefined”>privacy technology for payments and treasury management maintaining neutrality and avoiding lobbying activities.