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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Vitalik Buterin, Ethereum’s co-founder, took to social media to clarify the Ethereum Foundation’s (EF) spending practices following a surge of speculation and debate within the crypto community.
As discussions intensified about how the EF allocates its substantial resources, Buterin’s intervention sought to address this issue early.
In the thread, the foundation previewed the upcoming EF financial report covering 2022 and 2023, shedding light on internal and external expenditures.
The Origins of the Controversy: Why Now?
Concerns about the Ethereum Foundation’s spending practices have been brewing for some time now, particularly as the crypto community grows increasingly vigilant about the transparency and accountability of major organizations.
The EF, responsible for supporting Ethereum’s ecosystem through funding research, development, and various initiatives, has often been the center of debates regarding how it allocates its considerable financial resources.
After all, Buterin loves debates.
Critics have questioned whether the foundation’s spending aligns with its stated mission of promoting decentralization and innovation within the Ethereum network.
The controversy gained momentum after various stakeholders within the community raised questions about the transparency of the EF’s financial reports.
Some argued that the foundation was not forthcoming about the specifics of its expenditures, leading to concerns that funds might not be used efficiently or in ways that benefit the Ethereum ecosystem at large.
These criticisms were further fueled by the perception that specific spending categories, particularly those labeled as “new institutions,” lacked clear definitions or explanations.
Clarification on EF’s Spending: Buterin’s $140K Annually Salary
In response to these growing concerns, the foundation took to X (Twitter) to address the issue head-on, sharing insights from a forthcoming Ethereum Foundation report detailing the organization’s spending for 2022 and 2023.
According to the thread, the report will be published ahead of Devcon SEA, a major Ethereum conference. It will thoroughly explain how the foundation has allocated its resources.
The comments were accompanied by a preview of spending data, revealing the division between internal and external expenditures.
The foundation clarified that approximately 38% of its spending in both years was directed toward internal initiatives, while the remaining 62% was allocated to external grants.
Internal spending includes support for key teams working on projects like Geth, Privacy & Scaling Explorations, Solidity, and Cryptography Research.
According to the thread, these teams operate highly transparently, regularly sharing updates and progress with the community.
One of the most scrutinized aspects of the spending report was the “new institutions” category.
The EF clarified that this category refers to grants from emerging organizations such as the Nomic Foundation, the Decentralization Research Centre, L2Beat, and the 0xPARC Foundation.
They further humorously dispelled rumors that the EF might be funding unrelated initiatives, such as “World Economic Forum insect protein research,” by pointing out that the funds were instead used to support entities closely aligned with Ethereum’s long-term vision.
But really? Inspect protein research?
The remarks also touched on the Ethereum Foundation’s broader mission; the thread explained that the foundation’s strategy involves funding immediate research and development needs and investing in the future by supporting new institutions that can carry the torch of decentralization.
The forthcoming report is expected to provide even more detailed insights into the foundation’s financial practices and offer the community a clearer understanding of how resources are being used to advance Ethereum’s mission.
Notably, a passerby on Buterin’s tweet asked;
“What about Mr Vitalik’s salary?” He asked curiously.
182,000 SGD per year. That’s approximately close to $140k US Dollars.
Is that really the salary of the Ethereum cofounder? Hopefully, the report will shed more light.
