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Jimmy Aki
Author
Jimmy Aki
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Why Trust Cryptonews
The Ethereum Foundation disclosed in its November 8, 2024, financial report that its treasury is valued at $970.2 million, with 99% of its crypto holdings in ETH, showcasing its commitment to the ecosystem through grants and strategic financial policies.
Ethereum Foundation’s Crypto Treasury: 0.26% of ETH Total Supply
The Ethereum Foundation’s report revealed a $970.2 million treasury, with $788.7 million held in cryptocurrency and $181.5 million in non-crypto investments.
Notably, 99% of its cryptocurrency holdings are in ETH, representing 0.26% of the token’s total supply—a testament to the Foundation’s confidence in Ethereum’s long-term potential.
To ensure stability during market volatility, the Ethereum Foundation follows a conservative treasury management approach.
It periodically converts ETH to fiat during bullish markets to sustain operations and support projects during downturns.
This strategy reflects the Foundation’s focus on long-term sustainability, enabling it to fund critical Ethereum ecosystem advancements even through bear markets.
Spending Priorities and Long-Term Strategies
The Foundation allocated $32.1 million (30% of its 2023 spending) to layer-1 technology development and research, making it the largest expenditure category.
Institutional funding followed closely, with $28.6 million (27.1%) directed toward organizations advancing the Ethereum ecosystem.
Aya Miyaguchi, the Foundation’s Executive Director, emphasized the importance of long-term planning, stating, “EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem.”
At press time, ETH price flirts near the $3,000 mark, showing a substantial 16.10% price increase over the last seven days.
This growth has outpaced Bitcoin’s 8.41% rise in the same timeframe, though ETH is still about 40.43% below its all-time high of $4,891.
Exploring Ethereum Foundation’s Operational Structure and Teams
Beyond financial details, the report highlighted the Foundation’s operational structure, which is supported by specialized teams.
The Robust Incentives Group (RIG) studies cryptocurrency mechanics and develops incentives to strengthen the ecosystem.
Meanwhile, the Protocol Support team focuses on maintaining network health and stability for both developers and users.
The Devcon team organizes community events to foster collaboration and innovation across the Ethereum space.
Grant funding remains a cornerstone of the Foundation’s strategy, with resources allocated to organizations like Argot Collective, Geodework, and L2BEAT.
These grants are selected and monitored closely by foundation teams, who work to ensure funds drive meaningful advancements within the Ethereum network.
Mekong Testnet and the Road to Pectra
In a milestone for network development, the Foundation recently launched the Mekong testnet, a precursor to the Pectra upgrade expected in 2025.
Drawing from prior upgrades like Prague and Electra, Pectra seeks to enhance scalability, security, and efficiency.
Through a balanced approach of financial prudence, technical innovation, and targeted funding, the Ethereum Foundation underscores its dedication to fostering sustainable growth and evolution within the Ethereum ecosystem.
