crypto-economy.com
TL;DR
- The Ethereum Foundation (EF) has disclosed a substantial treasury of $970.2 million as of October 31, 2024, with 99% of its $788.7 million in cryptocurrency assets held in Ether (ETH).
- The foundation has implemented a conservative treasury management policy, selling ETH periodically to ensure sufficient resources for future operations and supporting spending during market downturns.
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EF has introduced a new conflict of interest policy and continues to invest significantly in the development of the Ethereum ecosystem, with major expenditures on layer-1 research and new institutions.
The Ethereum Foundation (EF) has released its 2024 financial report, revealing a substantial treasury of $970.2 million as of October 31, 2024. This disclosure highlights the foundation’s commitment to transparency and its strategic approach to managing its assets.
The report provides a detailed breakdown of the foundation’s holdings, which include both cryptocurrency and non-crypto investments.
Breakdown of Holdings
According to the report, the Ethereum Foundation holds $788.7 million in cryptocurrency assets, with a staggering 99% of these holdings in Ether (ETH). This represents approximately 0.26% of the total Ether supply.
The foundation also holds $181.5 million in non-crypto investments and assets. The decision to maintain such a large position in ETH underscores the foundation’s belief in the long-term potential of the Ethereum network.
Strategic Treasury Management
The Ethereum Foundation has implemented a conservative treasury management policy to ensure sustainable operations. This policy entails regularly selling ETH to ensure sufficient resources for upcoming operations, especially in anticipation of possible market declines.
The foundation programmatically increases its fiat savings during bull markets to support spending during bear markets. This approach aims to ensure the organization can continue funding important public goods for the Ethereum ecosystem regardless of market conditions.
Conflict of Interest Policy
In addition to financial disclosures, the Ethereum Foundation has introduced a new conflict of interest policy. This policy establishes boundaries for team members regarding their interactions with the broader ecosystem.
Specifically, foundation staff must inform the organization and consult with their team lead before taking on outside work. If the total value of the outside work exceeds $25,000 annually, it must be reviewed by an internal discussion group.
The policy prohibits staff from taking on work paid in illiquid assets with an unknown market value, such as advisors’ token packages for pre-launch projects.
Commitment to Ecosystem Development
The Ethereum Foundation’s financial report also highlights its continued commitment to the development of the Ethereum ecosystem. In 2023, the foundation’s largest expenditure was on layer-1 research and development initiatives, accounting for 30.4% of spending, or $32.1 million.
The second-largest category was funding for new institutions, which received 27.1% of the budget, equivalent to $28.6 million. These funds primarily supported organizations dedicated to advancing the Ethereum ecosystem.