In the first quarter of 2025, the Ethereum Foundation distributed $ 32.6 million in grant. While it has recently been at the heart of an important reshuffle, it reviews several aspects in its functioning. Thus, after its cash management has been debated several times, the Ethereum Foundation rebuilds its objectives.
- The Ethereum Foundation distributed $ 32.6 million in subsidies in the first quarter of 2025, while revising its cash management policy.
- It plans to diversify its assets, by integrating investments into DEFI and tokenized active assets, while emphasizing security and alignment with the Cypherpunk ethos.
A new policy for managing its cash flow
There Ethereum Foundation is a non -profit organization which aims to support network development Ethereum.
To carry out this mission, it hold the equivalent of $ 618 million in cryptocurrencies. The overwhelming majority of these funds is, unsurprisingly, owned in ETH.
On June 4, Hsiao-wei Wang, co-director of the Ethereum Foundation published a article returning to the New Foundation Treasury Policy on the official blog of it.
The objective of this new policy is to strengthen financial stability while aligning its actions with the short and long -term objectives. The whole thing, respecting the ethos of Ethereum, namely decentralization, security and transparency.
At first, this publication describes the annual expenses which will be carried out by the Foundation. Thus, it plans to allocate 15% of its cash over the next 2 years. A figure that will tend to Subsequently decrease to 5% in the next 5 years.
“This policy reflects our conviction that the period 2025-26 will probably be crucial for Ethereum and that it is necessary to focus more on essential results. »»
Management and diversification of assets
Until now, the Ethereum Foundation tended to only have its ETH. However, last January, she announced his desire to use his assets more actively to generate yields.
As a result, the cash flow will be diversified between ETH (Stoking, DEFI), Fiat assets (liquidity, bonds, term deposits) and tokenized active assets.
However, investments DEFI will favor the securitythere liquidity and theProtocol auditabilitywhile avoiding exposing the foundation to systemic or concentration risks. In other words, it will promote proven platforms, rather than the search for yields at all costs.
“The annual FE report will contain information relating to cash, including a summary of the main cash assignments. For example, percentages in fiduciary currency, unused ETH and ETH deployed. »»
Real the foundation at the Cypherpunk ethos
Regarding the choice of DEFI protocols and allowances, the Foundation will be based on an evaluation framework called « Defipunk ».
He origins in the Cyplerpunk Pioneers claims at the crypto ecosystem. Thus, it highlights security, open source, financial autonomy, Trustless solutions and privacy.
“Protection of privacy is historically neglected in space defined in the broad sense, but it remains essential. It protects players in the digital surveillance market and physical threats. »»
And it will the same for the subsidies distributed by the latter. Indeed, it will apply the same assessment framework when allowing the subsidies to the protocols built on Ethereum.
« Thanks to research, advocacy and deployments of strategic capital, the EF can help cultivate a native financial ecosystem of Ethereum which protects autosvesty and supports, on a large scale, » a company open in the electronic era « . »»
So many developments thanks to which the Foundation hopes to reconnect with the community. Indeed, it has frequently been the subject of criticism, in particular vis-à-vis the Massive sales of ETH to finance its operations.