The Ethereum Foundation (EF) released its annual financial report earlier today, revealing a strong hold and commitment to transparency and long-term sustainability.
Ethereum Foundation Holdings stock price
As of October 31, 2024, EF disclosed that its treasury held approximately $970.2 million, with $788.7 million in crypto assets and $181.5 million allocated to non-crypto investments.
Notably, approximately 99.45% of EF’s crypto holdings are in Ethereum (ETH), representing 0.26% of the total circulating supply of ETH.
In its report, the EF emphasized a systematic financial management policy designed to deal with market volatility and ensure liquidity during extended market downturns. They commented in the report:
We prefer to hold the majority of our wealth in ETH. EF believes in the power of Ethereum, and our ETH funds represent that long-term vision.
To maintain this approach, EF “occasionally” sells shares of ETH Holdings, creating fiat reserves during bullish market conditions to finance spending needs during bearish phases.
1/ Introducing the Ethereum Foundation Report, 2024 Edition. Learn more about EF, our latest work, the Ethereum ecosystem of sponsors, new organizations and policies. The full report is here: pic.twitter.com/uhbzsngaWD
– Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) November 8, 2024
It is worth noting that EF’s clarity about this reason comes after previous tests and public reactions regarding large transactions and sales of ETH on a basis without prior notice, leading to a call for clear communication.
Strengthening the Conflict of Employee Benefit Laws
The Ethereum Foundation has also introduced improved measures to deal with potential conflicts between its team members. According to the revised policy, EF employees, called “EFers,” may participate in outside work but must disclose their involvement and seek approval from their team leaders.
For engagements with a total value exceeding $25,000 per year, an internal negotiation team review is mandated. The policy specifically prohibits EF employees from accepting compensation for illegal assets with an uncertain market value, such as advisory token packages for pre-launch projects, unless extraordinary exceptions are granted.
The report also highlights that EF’s main goal is to fund and support public assets on the Ethereum network. The 2023 budget included $47.4 million dedicated to “new facilities” aimed at growing the ecosystem, a significant increase from $28.6 million in 2022.
Additionally, EF invested $34.7 million in Layer 1 research and development, up from $32.1 million last year. Aya Miyaguchi, executive director of the Ethereum Foundation, emphasized the foundation’s long-term approach, saying:
EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem. We are more committed than ever to planting seeds that can mature over the years, ensuring Ethereum’s sustainability and growth together.
The featured image was created with DALL-E, a Chart from TradingView