Ethereum Foundation Unveils New Treasury Strategy to Secure Its ETH Reserves – Crypto News – Crypto News
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Ethereum Foundation Unveils New Treasury Strategy to Secure Its ETH Reserves – Crypto News

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8 months ago

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The Ethereum Foundation (EF) has rolled out a new treasury strategy that aims to protect its ETH reserves with a 2.5-year runway while also targeting a 5% spending limit.

The new plan prioritizes transparency, operational efficiency, and alignment with the blockchain’s long-standing values.

The Treasury Strategy

In a June 4 blog post, the Foundation outlined plans to allocate 15% of its treasury annually toward operational expenses, while maintaining a financial buffer sufficient to cover two and a half years of spending.

Under this model, ETH will only be sold if the liquid reserves dip below this threshold. Reserve levels will be assessed quarterly to determine whether asset sales are necessary, helping preserve treasury strength amid market fluctuations.

“We intend to reduce annual opex roughly linearly over the next five years, ending at a long-term 5% baseline that is common for endowment-based organizations,” the post read.

It explained that the policy reflects the organization’s belief that 2025-26 is likely to be pivotal for Ethereum, requiring focused investment in key outcomes.

“We will frequently reallocate funds between protocols for reasons such as changing market conditions, diversification, or new yield opportunities,” the organization wrote. It emphasized that withdrawals should be understood in that context and not interpreted as anti-endorsements.

The non-profit also wants to grow and manage its treasury using secure, permissionless, and audited DeFi protocols. This will include independently staking ETH and lending wrapped ETH (wETH) through established DeFi platforms. Further, it plans to diversify its portfolio periodically by converting some assets into fiat currency.

Defipunk Philosophy

A new guiding principle, called “Defipunk,” is also a part of the financial strategy. Drawing inspiration from the early cypherpunk movement, this philosophy focuses on the importance of decentralization, financial privacy, and open-source innovation.

The new philosophy will serve as decision-making criteria for the organization as it selects projects and collaborations to fund. Financial support will be directed toward teams that share these values, creating a DeFi ecosystem that believes in freedom, anti-censorship, and forward-thinking development.

As part of its commitment to transparency, the Ethereum Foundation has also restructured its internal operations. A dedicated finance team will now issue quarterly reports detailing performance, asset distribution, and strategic actions. Annual reports will also provide deeper insight into ETH deployment and fiat-crypto conversions.

The non-profit also recently reorganized its internal teams by renaming its research and development unit to “Protocol.” This department will focus on scaling Ethereum’s core infrastructure, expanding blob space, and enhancing the user experience.

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