Ethereum Foundation sets new treasury policy with $970 million assets

The Ethereum Foundation has introduced a new treasury policy aimed at improving transparency and aligning operational costs with its Ether (CRYPTO:ETH) reserves amid a critical 18-month period for the network.

The policy ties annual operating expenses and runway duration to the foundation’s treasury, which stood at approximately $970.2 million as of October 31, 2024, including $788.7 million in crypto assets and $181.5 million in non-crypto holdings.

Hsiao-Wei Wang, a director at the foundation, highlighted that the Ethereum Foundation currently has about 2.5 years of cash runway, emphasising the importance of the coming 18 months for deploying resources and supporting the ecosystem.

“This policy reflects our conviction that 2025-26 are likely to be pivotal for Ethereum, warranting enhanced focus on critical deliverables,” Wang said.

The move follows criticism over the foundation’s recent unexpected Ether sales, which some community members felt undermined trust.

To maintain transparency, the foundation plans to publish quarterly and annual reports detailing asset holdings, investment performance, and significant developments.

The Ethereum Foundation also intends to engage more actively with decentralised finance (DeFi) protocols that align with its principles by investing treasury assets in permissionless, audited protocols.

Earlier this year, the foundation allocated 45,000 ETH, worth $120 million at the time.

This marks a shift from the foundation’s previous stance of avoiding support for specific protocols to maintain neutrality, a position that had drawn criticism within the ecosystem.

Additionally, the foundation recently restructured its internal development team, including layoffs, amid Ethereum’s underperformance compared to Bitcoin and Solana during the current market cycle.

At the time of writing, the Ethereum price was $2,610.40.