Key Points:
- Ethereum Foundation will allocate up to 50,000 ETH to DeFi activities, managed via a multisig wallet on Safe.
- The foundation is restructuring to enhance support for dApp developers, promote transparency, and address community concerns about leadership.
The Ethereum Foundation has announced significant organizational reforms following mounting criticism from the Ethereum community.
Read more: Ethereum Foundation Is Now Considering ETH Staking Ahead of Challenges
Ethereum Foundation Announces 50,000 ETH Allotted to Boost DeFi Activities
The nonprofit intends to increase support for decentralized application developers and make the organization more transparent.
Ethereum co-founder Vitalik Buterin announced via X that the Ethereum Foundation will make structural changes to address community complaints and increase its engagement with developers.
One of the major initiatives is to contribute as much as 50,000 ETH, or about a fifth of the foundation’s 268,000 ETH stash, worth some $890 million at today’s prices, to DeFi initiatives on Ethereum.
The funds will be managed through a multisignature wallet on Safe, a secure Ethereum-based protocol. An Ethereum Foundation member, Hsiao-Wei Wang, confirmed that the setup was complete and had executed a test transaction on lending platform Aave. Real disbursements will follow over the next few days.
Focus on Decentralization and Community Transparency
The move aims to quell community angst over perceived leadership and engagement from the foundation that some blame has indirectly contributed to Ether’s recent underperformance against other large cryptocurrencies.
Ethereum core developer Eric Conner was also on the call and said that the foundation could cover the majority of its internal expenses from staking rewards, a dynamic that would indirectly reduce selling pressure on Ether’s market.
Buterin also emphasized the foundation’s renewed focus on decentralization, privacy protection, censorship resistance, and technical expertise. However, he clarified that the organization would not engage in political lobbying or ideological advocacy.
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