In a heated response to allegations that the Ethereum Foundation was irresponsibly selling its ETH assets, co-founder Vitalik Buterin strongly denied X’s accusations. In the statement, Buterin provided detailed information about the Foundation’s financial practices and its contributions to the ecosystem. .
The controversy arose after user X accused the Ethereum Foundation of “dumping” ETH, implying that such actions had a negative impact on the price of ETH. Buterin rushed to X to address these concerns, stressing that not only has he not sold any ETH himself recently, but the amount of ETH he holds has actually increased.
Is The Ethereum Foundation Dumping ETH?
On October 26, 2024, he gave a clear denial of these rumors, saying, “I haven’t sold a single ETH in the last month? The amount of ETH I hold has increased. ” Addressing further questions about the actions of the ETH Foundation, Buterin elaborated on the significant costs that the Foundation incurs, which are essential for the development and maintenance of the Ethereum network.
“The ETH foundation pays responsible researchers and devs [making] Ethereum is not bleeding for 5M ETH/year to guarantee work, your costs are low today, and your purchases are placed in less than 30 seconds instead of 1-30 minutes (EIP 1559), show some respect” said Buterin.
Buterin also detailed the Foundation’s contributions, detailing several key initiatives that underline its commitment to technological development and network security. He mentioned the development of zero-knowledge (zk) technology, which facilitates the private use of ETH, citing projects such as the Railway as examples.
In addition, Buterin discussed the progress of account withdrawal technology, which aims to simplify user interaction with Ethereum by eliminating the need for traditional seed sentences and reducing intermediate points of failure reminiscent of the Sam Bankman-Fried (SBF) incident. This innovation will “allow normies to use ETH securely without seedphrases *or* SBF-style central points of failure,” wrote the founder of ETH.
Buterin also highlighted the Foundation’s role in promoting the global Ethereum community through local events around the world. He noted that many of these events often underestimate the involvement of the Foundation, yet they play a major role in spreading information and encouraging collaboration between developers and enthusiasts.
Network security and trust were other focus points for Buterin’s protection. He proudly stated that Ethereum has maintained zero downtime from denial-of-service (DoS) attacks and consensus failures since 2016. In addition, he praised the “various security work of the Foundation (internal dev and grants) that prevented many financial losses.”
Buterin concluded by emphasizing the Foundation’s contributions to the broader Ethereum ecosystem, including “libraries for all types of code you use (wallets, defi applications…).”
At press time, ETH traded at $2,521.
The featured image was created with DALL.E, a chart from TradingView.com
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