The Ethereum Foundation’s treasury reached $970.2 million as of October 31, 2024, with $788.7 million in crypto assets, mostly in ETH, representing 0.26% of the total ETH supply, reaffirming its strategy of holding primarily ETH for its long-term potential.
In response to community concerns about transparency, the foundation has released this report and clarified strict policies to avoid conflicts of interest, including prohibiting employees from accepting payments in illiquid assets.
The EF has increased its investments in the ecosystem, spending $47.4 million in 2023 compared to $28.6 million the previous year, while Ethereum has seen significant growth in active addresses, on-chain volume, and the price of ETH.
The Ethereum Foundation’s Treasury Exceeds $1 Billion
The Ethereum Foundation (EF) has recently released its annual financial report, revealing a total treasury value of $970.2 million as of October 31, 2024 (presumably with additional tens of millions of dollars in profit since). This amount is divided between $788.7 million in crypto assets, primarily consisting of ETH, and $181.5 million in non-crypto investments and assets. The ether reserves represent 0.26% of the total ETH supply, illustrating the foundation’s commitment to its own ecosystem.
In its report, the foundation reaffirmed its strategy of primarily holding ether, justifying this choice by its confidence in the long-term potential of Ethereum. This reserve is used to finance initiatives that support public goods essential to the Ethereum ecosystem, even in the event of a prolonged market slowdown. The foundation follows a conservative management policy, predicting the periodic sale of ETH to replenish its fiat reserves, especially during bullish markets, to continue its investments during bearish markets.
A Response to Community Concerns
This publication comes after the foundation was criticized for significant and unexplained transactions, prompting calls for increased transparency. This step aims to build trust among users and contributors in the management of funds by the Ethereum Foundation and demonstrate its ability to navigate an environment where transparency and accountability are becoming increasingly central.
Strict Measures to Avoid Conflicts of Interest at the Ethereum Foundation
The EF’s report not only detailed the foundation’s assets but also clarified its policy regarding conflicts of interest. Employees, known as ‘EFers’, may engage in paid external activities, provided they inform the foundation and consult their superiors. Any activity exceeding $25,000 per year must be reviewed by an internal discussion group.
A strict limit is imposed: EFers cannot accept payments in the form of illiquid assets with uncertain market value, such as pre-launch token project packages. This rule, designed to avoid conflicts of interest, allows only rare exceptions.
This policy comes in the context of concerns raised after the resignation of two Ethereum researchers, Justin Drake and Dankrad Feist, from their advisory roles with the EigenLayer protocol. These positions involved payments in Eigen tokens, reigniting discussions about integrity and potential personal interests within the foundation.
Continued Investment in Ethereum’s Future
In 2023, the EF made significant investments in emerging institutions supporting the ecosystem, with expenses amounting to $47.4 million, up from $28.6 million the previous year. First-layer research and development also saw increased funding, reaching $34.7 million compared to $32.1 million in 2022.
This investment strategy aligns with the Ethereum Foundation’s commitment to building a resilient and sustainable ecosystem. As expressed by Aya Miyaguchi, executive director of the foundation, on X
Significant Growth for Ethereum
Ethereum’s recent momentum is also reflected in an increase in the number of active addresses, which reached 13.7 million in October, up from 12.3 million in September. On-chain volume has also experienced significant growth, reaching $108.6 billion compared to $90.9 billion the previous month and $57.1 billion in October 2023. The price of ETH has followed this trend, rising by 2.4% in 24 hours and nearly 20% over five days, reaching $2,920 at the time of the report.
