The Ethereum Foundation Lays Bare – Since its launch in 2015, Ethereum has become an essential blockchain in the crypto ecosystem. At the same time, the network is actively supported and funded by the Ethereum Foundation, a non-profit organization. This is at the origin of numerous grant programs aimed at financing the development of the network. For the first time, the foundation has revealed details of its cash accounts.
The Ethereum Foundation’s war chest: cryptos, but not only!
On April 18, the Ethereum Foundation (EF) published a report allowing the community to better understand its vision. Back on its object, its motivations as well as the funds it holds and the way it spends them, nothing is left behind.
This report was the perfect opportunity to reveal the composition of the cash held by the FE. Thus, it holds $1.6 billion in assets whose $1.3 billion in cryptocurrencies and $300 million in non-crypto assets.
Unsurprisingly, the overwhelming majority of cryptocurrencies held are ETH. In practice, the foundation holds approximately 0.3% of all ETH in circulation. It also has a few other cryptocurrencies, the nature of which has not been revealed.
Additionally, the FE has $300 million in non-cryptocurrency assets. Although their exact nature was not revealed as part of the report, developer Justin Drake meanwhile left imply that they were fiat currencies.
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Ethereum Foundation spending: when there is water in the gas
Secondly, the report of the Ethereum Foundation reports the amounts as well as the nature of the expenses incurred in 2021.
In total, FE spent $48 million in 2021, which can be broken down into 6 categories :
- Research and development related to L1 ($21.8 million);
- R&D related to L2 ($1.9 million);
- R&D relating to zero-knowledge ($3.6 million);
- Ethereum as a developer platform ($5.9 million);
- Community development ($9.7 million);
- Internal operations ($5.1 million).
Moreover, this one spent more than Additional 130 million under its Client Insentive Program. This aimed to distribute 39,168 ETH to the main development teams of the various Ethereum clients.
This report comes a few weeks after the announcement of a postponement of the deployment of The Merge. As a reminder, this update will make it possible to make a transition in the consensus used by the network, moving from proof of work to proof of stake.
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