Ethereum Foundation to Release Financial Report: $650M in Holdings

Key Points:

• Recent ether transfers to Kraken raised concerns about transparency.
• Ethereum Foundation will release a financial report to address community concerns.
• The foundation holds $650 million in its main wallet and spends $100 million annually.

The Ethereum Foundation plans to release a financial report addressing concerns about its spending. Researcher Justin Drake revealed the foundation holds $650 million and spends about $100 million annually. Drake mentioned the foundation is financially stable, with a strategy to spend 15% of its funds each year.

Concerns Over Recent Ether Movements

The Ethereum Foundation has faced criticism recently for transferring 35,000 ETH to Kraken, raising concerns about transparency in the platform’s financial activities.

Aya Miyaguchi, executive director at the foundation, clarified that the transferred funds were related to treasury management outlays used for grants and employee salaries. This was not a sale, according to her explanation; she reassured the community that any sales in the future would be gradual.

Ethereum Foundation: Transparency Demands Grow

For a while now, the community has been asking the Ethereum Foundation to be more transparent about its activities. The fact that large ether movements were announced via third-party Twitter bots rather than the foundation itself set several eyebrows wiggling.

Due to the misunderstandings, there have been suggestions by users that the foundation needs to account regularly for what is being spent, how much is likely to be sold shortly, and the distribution of money.