Vitalik Buterin says Ethereum foundation (EF) will last forever
In recent announcements from key figures within the Ethereum Foundation (EF), the organization has provided an in-depth look into its current financial health and long-term strategy. These updates come as the foundation seeks to reassure the Ethereum community about its future sustainability while managing the fluctuating value of its cryptocurrency holdings.
Justin Drake’s AMA and Strong Reserves
On 5th September 2024, Justin Drake, a researcher at the Ethereum Foundation, revealed critical financial details during an Ask Me Anything (AMA) session. Drake shared that the foundation’s annual expenditure currently stands at around $100 million, highlighting EF’s significant commitment to funding Ethereum’s development, research, and ecosystem projects.
Drake also disclosed that EF holds approximately $650 million worth of ETH in reserves, in addition to enough fiat currency reserves to sustain the foundation’s activities for the next 10 years. However, Drake emphasized that this projection is subject to change due to ETH price fluctuations, which could either extend or shorten the foundation’s financial runway.
Vitalik Buterin Discusses Long-Term Budget Strategy
On 6 Sep 2024, Ethereum co-founder Vitalik Buterin added further context to the foundation’s financial strategy in a post on Reddit.
Buterin explained that the foundation’s current budget strategy is to spend roughly 15% of the remaining funds each year. This method is designed to allow the foundation to operate indefinitely, ensuring that it can continue supporting the Ethereum ecosystem for years to come.
However, Buterin pointed out that this approach will gradually reduce the foundation’s relative size and influence over time. As the budget depletes each year, the Ethereum Foundation will become a smaller player within the broader Ethereum ecosystem.
This disclosed EF’s financial strategy reflects the belief that Ethereum itself, as a decentralized network, should ultimately be resilient to the ups and downs of any one entity’s financial situation. By gradually reducing its spending and influence over time, the foundation aims to empower the broader Ethereum crypto community to take on more responsibility for the network’s growth and development.
Ethereum price action
The current trade price of Ethereum coin is $2,282 & this price is 3.61% down over the last 24 hours period.
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