Ethereum Foundation Financial Update: $650 Million in Treasury and Future Plans

Ethereum Foundation Financial Update

The Ethereum Foundation, the principal non-profit organization dedicated to supporting the Ethereum blockchain ecosystem, is poised to unveil an updated financial report in the near future. This announcement comes from a leading official who has also disclosed that the foundation’s primary Ethereum wallet currently holds approximately $650 million.

Justin Drake, a notable researcher at the Ethereum Foundation, participated in a typed ask-me-anything session on an Ethereum subreddit, using the handle “bobthesponge1.” During this interaction, he shared that the foundation typically expend approximately $100 million annually and currently possesses a runway of about ten years, contingent on the fluctuations in the price of ether (ETH), which is the native cryptocurrency of the Ethereum network.

Drake confirmed to CoinDesk that the Reddit account “bobthesponge1” indeed belongs to him. He elaborated in the AMA session, stating, “The EF has a fiat buffer to cover a couple of years of runway.” He added that sales of ETH were temporarily halted due to regulatory considerations, which meant that the buffer had not been replenished until recently.

The last substantial update regarding the Ethereum Foundation’s financial holdings was released in March 2022. At that time, the foundation reported a treasury balance of about $1.6 billion, comprising approximately $1.3 billion in ETH and around $11 million in other cryptocurrencies. Notably, during that period, the price of ETH stood at $3,283. Since then, the price has experienced a decline of roughly 30%, currently sitting at $2,296.

Over the past two years, the combination of the foundation’s burn rate and the decrease in cryptocurrency prices has significantly impacted the total available funds. In response to a redditor’s inquiry about the existence of a sustainability plan should the foundation deplete its funds, Drake candidly replied, “I’m not aware of any plan for sustainability :)”.

This update was initially reported by The Block.

Read more: Ethereum Foundation Faces Inquiry From a Government; Fortune Says SEC Investigating ETH