- Ethereum Foundation holds $650M, spends $100M annually, aims for 10-year financial runway.
- Community demands transparency as Foundation plans to publish a financial report soon.
- Recent 35,000 ETH transfer was part of treasury management, not immediate sales.
The Ethereum Foundation is set to release a financial report soon, addressing the community’s growing concerns regarding its spending habits and financial transparency.
According to Justin Drake, a prominent Ethereum researcher, the Foundation currently holds approximately $650 million in its main wallet and spends around $100 million annually.
In a recent ask-me-anything (AMA) session on the r/ethereum subreddit, Justin Drake, who goes by the username “bobthesponge1,” revealed that the Ethereum Foundation plans to publish a financial report similar to the one released in April 2022.
Drake stated that the Foundation’s financial runway could last approximately ten years, depending on the price of ether (ETH).
He added that the current budget strategy is to spend 15% of the remaining funds annually, allowing the Foundation to continue its operations indefinitely, though its influence in the ecosystem may gradually diminish.
The Ethereum Foundation has been under scrutiny recently due to large, unexplained movements of ether from its wallets. Last month, the blockchain analytics firm Lookonchain reported that the Foundation had transferred 35,000 ETH, valued at $94.07 million, to the Kraken exchange.
Speaking about the budget strategy, co-founder of Ethereum Vitalik Buterin made the impression. He noted that the Foundation plans to fund its activities forever, even though its share in the ecosystem might gradually decline.
The Foundation has also been accused of not providing the public with updates on its financial activities. Community members have requested frequent physical and financial statements to monitor the company’s expenditures, revenues, and well-being.
However, Aya Miyaguchi, the executive director of the Ethereum Foundation, supported this by telling the community that the recent transfer was part of the Foundation’s treasury, mainly for grants and salaries.
To dispel the critics’ accusations that the funds received were promptly utilised to sell shares, Miyaguchi explained that the funds were not realized and that future realizations would be better coordinated and systematic.
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