The Ethereum Foundation has announced plans to allocate 50,000 Ether, approximately valued at $165 million, to bolster Ethereum’s decentralized finance (DeFi) ecosystem. This decision follows criticism that the foundation hasn’t been sufficiently engaged with DeFi development.
Vitalik Buterin, Ethereum’s co-founder, revealed the foundation’s commitment to supporting app builders and increasing transparency for the community. The funds will be managed through a multisignature wallet and have undergone a successful trial transaction via the lending protocol Aave. Although setup of the wallet might take a few days, this initiative is seen as a significant step.
The foundation’s treasury has notably decreased from 617,000 Ether in January 2020 to 269,000 Ether, valued at roughly $894 million. This upcoming 50,000 Ether contribution constitutes 18.5% of the foundation’s total holdings.
The move comes amid a backdrop of criticism over the Foundation’s handling of its assets, such as the sale of Ether for salaries and events that have contributed to market pressure. Some community members have linked the foundation’s perceived lack of proactive involvement to Ether’s underperformance against other cryptocurrencies like Bitcoin and Solana.
Despite these challenges, Buterin emphasized that the foundation is not altering its core principles or engaging in regulatory lobbying. He reiterated the foundation’s dedication to neutrality and creating value beyond financial gain. This sentiment was echoed by CryptoQuant’s founder, who praised the foundation’s focus on value creation.
