Ethereum Foundation to Lock 70,000 ETH for Future Projects

The Ethereum Foundation (EF), a nonprofit entity, has initiated a staking strategy for its treasury, starting with a deposit of 2,016 ETH. The foundation plans to lock an overall total of 70,000 ETH, with the earned rewards reinvested back into the EF treasury.

“The Ethereum Foundation has begun staking a portion of its treasury, in line with its Treasury Policy announced last year,” the foundation stated via Twitter.

This staking initiative is designed to bolster the Ethereum ecosystem, supporting essential research and community funding. EF currently manages assets valued at $371 million, predominantly held in Ethereum, which accounts for approximately $314 million of that total.

“We are pleased to take this important step that will help secure the Ethereum network while also funding core operations and activities of the EF,” representatives added.

To facilitate this process, the foundation is employing tools from Attestant, specifically Dirk for distributed signing and Vouch for managing validator functions. Historically, the EF faced scrutiny for its ETH sales and the lack of transparency surrounding its financial operations.

Vitalik Buterin's Recent Sales

In related news, Vitalik Buterin, co-founder of Ethereum, has sold more than 10,000 ETH since early February, amounting to approximately $21.7 million at an average price of $2,027 per token. This activity has raised eyebrows, particularly as it coincided with a significant market correction, with ETH down 38% over the past month, trading around $1,800.

“Over the past 3 days, Buterin sold 3,788.57 ETH for $7.3 million,” reported analytics firm Lookonchain.

Buterin’s recent asset sales come in the context of the foundation entering a phase of “moderate austerity,” and he has directed funds towards various promising sectors, including finance and biotechnology. The community's reactions to Buterin's selling activities have been mixed, with some expressing concerns about the impact on ETH prices, as past sales have often preceded declines.