Ethereum Foundation Targets Scalability with New Treasury Policy
The Ethereum Foundation, a non-profit organization leading Ethereum’s blockchain development, has announced a new treasury policy, identifying the next 18 months as crucial to the development of the ecosystem.
In a blog post published on June 4 and shared on X, the policy aims to maintain financial stability and transparency while addressing past concerns over ETH sales. With a treasury of $970.2 million, 81% being in ETH, the Ethereum Foundation is planning resources to achieve key milestones in the coming 18 months.
A Clear Plan for Ethereum’s $970M Treasury
The Ethereum Foundation’s policy establishes a structure for managing its $970.2 million treasury. It links operational costs to ETH reserves, targeting a 2.5-year cash runway.
Annual operating expenses are set at 15% of the treasury, with a goal to reduce this to 5% over five years. ETH sales are to be decided at intervals based on deviations from this runway using fiat off-ramps or on-chain swaps to ensure predictable financial management.
Transparency is central, with quarterly and annual reports on holdings and performance, as outlined in the Foundation’s 2024 report. This addresses past criticisms, such as a $94M transfer to Kraken, raised in X discussions.
The policy also incorporates DeFi, with 45,000 ETH worth around $120M deployed to protocols like Aave and Compound in February 2025, per an X post.
Ethereum Foundation Prioritizes Scalability and Decentralization
The Ethereum Foundation identifies 2025-26 as a critical window for improving Ethereum’s scalability and decentralization. The 2.5-year runway ensures strategic resource management, balancing development at a time of market fluctuations.
ETH, down 1.8% since October 2024 and 46.5% below its $4,891 all-time high, remains in focus, with the Foundation’s 80% ETH-dominant portfolio showing long-term confidence.
Ethereum price chart (Source: TradingView)
The “Defipunk” model, prioritizing privacy-focused DeFi, supports open-source, permissionless protocols, potentially promoting innovation. The Foundation’s recent layoff announcement, as reported by Ecoinimist, aligns with a more streamlined approach toward attaining these objectives amidst market challenges.
What the Treasury Plan Means for ETH Investors
The policy extends trust by solving historical sale problems of ETH and is in line with Ethereum’s decentralized principles.
By leveraging DeFi protocols like Aave and Compound for returns, vetted in terms of security, the Foundation positions itself at the forefront of Web3 finance.
For investors, the policy means stability, with ETH sales timed for bull markets to fund operations during downturns.
The Foundation will draw from community input to revise reassessments and ensure alignment with Ethereum’s mission.
