What is the Ethereum Foundation?
The Ethereum Foundation is a non-profit organization. The organization encourages and supports decentralized application research, development, and teaching. The Ethereum Foundation helps Swiss communities. Stiftung Ethereum (German for “Ethereum Foundation”) is a non-profit organization based in Switzerland, especially in the lovely town of Zug: The Stiftung is ultimately responsible for managing finances and establishing Ethereum’s long-term vision and direction.
What about the Ethereum Foundation’s treasury?
The Ethereum Foundation is the non-profit organization in charge of developing the second largest blockchain in the world. The Swiss-based organization divulged the composition of its treasury for the first time, with some surprises in store.
Almost 19% of cash made up of non-crypto assets
When we examine the asset distribution in Ethereum’s treasury more closely, the share of traditional assets may surprise us. Indeed, for just over $300 million, it comes to about 18.8%. The rest of the cash is logically made up of an overwhelming share of Ether with 80.5% or 1.29 billion dollars. This amounts to around 0.3 percent of all Ether in circulation. The foundation has other cryptocurrencies worth just over 0.7 percent and roughly $11 million as a complement.
If the number of traditional assets, presumably Fiat currency may surprise at first glance. It acts as a safety net in the case of a big catastrophe in the crypto-assets industry. This should allow the project to continue to develop even if prices, particularly for Ether, decline. In a market that is still young and immature, this is a scenario that cannot be ruled out.
A prudent financial management
Another takeaway from this report is the foundation’s financial management. The Ethereum Foundation barely spent $48 million in 2021, according to our research. The majority of these costs, $21.8 million, are for research on layer 1, or the first layer solution, which is the core Ethereum blockchain. The Ethereum community has received $9.7 million in funding.
5.9 million for the development platform, 5.1 million for worldwide operations, 3.6 million for zero knowledge research, and finally 1.9 million for layer 2 solution research and development, such as Polygon or Arbitrum, to mention a few. An intriguing study that allows us to observe the Ethereum project’s sound and long-term financial management. A means to reassure investors and demonstrate the foundation’s commitment to one of the blockchain ecosystem’s leaders.
In a time of uncertainty, a display like this is all the more crucial. Ethereum appears to have all of the resources it needs to grow, particularly as it approaches the critical shift from proof of work (Proof-of-Work) to proof of stake (Proof-of-Stake) in the coming months.
Few would be shocked to discover that the Ethereum Foundation is positive about Ether. The non-profit said Monday that 80 percent of its $1.61 billion treasury fund is held in the blockchain’s native currency.
14 investors have contributed to the Ethereum Foundation. The most recent investors are Alexis Berthoud and Julian Sarokin. Ten investments have been made by the Ethereum Foundation. Gitcoin raised $500K on November 16, 2021, which was their most recent investment.
The Ethereum Foundation (EF) is a non-profit committed to the advancement of Ethereum and associated technologies. The EF is neither a corporation nor a regular non-profit.
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