Ethereum $2,349.89 The Foundation announced that it plans to release its financial report as soon as possible. This comes after community members have been drawing attention to the foundation’s spending patterns.
Ethereum Foundation Heeds Calls for Transparency
Ethereum Foundation researcher Justin Drake revealed this during an “ask me anything” (AMA) event on the r/ethereum subreddit, where he participated under the pseudonym “bobthesponge1.” A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
“The Ethereum Foundation will release a comprehensive financial report as soon as April 2022,” Drake said.
The report, published in April 2022, stated that the value of the foundation’s assets under management as of March 2022 was $1.6 billion. $1.3 billion of this amount was held in Ethereum.
Regarding the current discussions surrounding the foundation’s financial expenses, Drake attempted to clarify some issues with his “limited personal understanding.” According to Drake, the Ethereum Foundation spends around $100 million annually and has around $650 million worth of funds in its main Ethereum wallet. This suggests a validity period of around 10 years, depending on the market price of ETH.
“We plan to spend 15% of the foundation’s remaining funds annually,” Drake said, a statement confirmed by Ethereum co-founder Vitalik Buterin in a separate comment on the subreddit.
Buterin noted that such a budget strategy means that the Ethereum Foundation will shrink over time.
Community Outcry and Mysterious ETH Transfers
Some members of the Ethereum community have expressed their displeasure with the lack of transparency around financial transactions, which has created fear, uncertainty, and doubt about the intentions of the Ethereum Foundation.
“The budget is part of the foundation’s treasury management and is used mainly for grants and salaries,” said Ethereum Foundation Executive Director Aya Miyaguchi.
Miyaguchi also noted that some recipients could only accept fiat currency, and regulatory complexities caused delays in treasury activities for a time.
However, one user, hyper1on (@0xhyper1on), countered this with a photo showing the transactions made alongside the Kraken transfer.
The post shows six movements of 1,000 ETH between January and August 2024. Another X user questioned why the Ethereum Foundation did not resolve the situation without having to wait for community members to express their concerns. They also noted that they were not happy to learn about the Kraken transfer from a third-party notification.
At the time of writing, the price of Ether is trading at $2,367.23, down 1.02% in the last 24 hours.
The Ethereum Foundation’s efforts to increase financial transparency are being closely watched by the community. The disclosure of the Foundation’s budget and spending strategies are seen as important steps to regain the trust of community members. The release of the financial report aims to provide greater transparency about Ethereum’s future financial management.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
