Ethereum Foundation tightens treasury rules

With just 2.5 years of financial runway left, the Foundation is shifting focus towards efficiency, transparency, and strategic resource allocation.

Ethereum Foundation unveils tighter treasury policy, linking spending to Ether reserves as it braces for a pivotal 18 months in the network’s development.

The Ethereum Foundation has introduced a stricter treasury policy as it prepares for a crucial 18-month period.

Spending will now be based on Ether reserves and market conditions, with just 2.5 years of runway remaining, according to director Hsiao-Wei Wang.

To improve transparency, the Foundation will publish quarterly and annual reports. Its treasury, worth around $970.2 million in October, was mostly held in ETH. Recent asset sales sparked backlash from the community.

In a shift from neutrality, the Foundation is now engaging with audited DeFi protocols. In February, it allocated 45,000 ETH to platforms like Aave, Spark and Compound. Internal restructuring also led to staff redundancies, though exact numbers were not revealed.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!