The Ethereum Foundation has allocated 50,000 Ether, approximately $165 million, to strengthen the Ethereum decentralized finance ecosystem.
Supporting the DeFi Ecosystem
The foundation will direct 50,000 Ether towards DeFi development, emphasizing support for developers and community transparency. Funds will be secured through a multisig wallet on Safe. According to the foundation's representative, Hsiao-Wei Wang, the wallet passed a successful test transaction.
Treasury Pressures and Community Criticism
This move represents 18.5% of the foundation’s current assets. The foundation’s treasury has decreased by 56% since January 2020. The announcement has sparked mixed reactions within the Ethereum community, with concerns about selling pressure and a call to use staking rewards for budget needs suggested by Eric Conner.
Balancing Vision with Expectations
Buterin emphasized the foundation’s commitment to neutrality. Despite support for the DeFi fund allocation, some criticize the perceived lack of engagement. Nonetheless, Buterin's focus on innovation over profit has been praised by industry leaders.
The Ethereum Foundation continues to prioritize the network's long-term growth amidst current financial challenges and community opinions.
