The Ethereum Foundation (EF) is tightening its spending strategy and ramping up support for DeFi as it heads into what it calls a critical 18-month period. A new treasury policy has been introduced to manage funds more carefully and stay better prepared for the challenges ahead.
Under this new plan, EF will tie its operating costs and runway to its ETH holdings, with regular reassessments. EF’s Hsiao-Wei Wang said the current treasury gives the Foundation about 2.5 years of runway, stressing the need for more deliberate capital deployment moving forward.
As part of this shift, EF will now use its treasury assets across audited DeFi protocols like Aave, earning yield and engaging directly with the Ethereum ecosystem it once kept distance from. According to OAK Research, this is a bullish development for ETH, as it reduces the need to sell tokens while supporting secure, open-source dApps. EF has already lent ETH and borrowed $2 million in stablecoins from Aave and may explore RWAs via platforms like Securitize.
EF clarified that ETH sales could still occur quarterly, depending on fiat needs, but less aggressively now that DeFi income streams are active. It’s also considering diversifying fiat reserves into low-risk instruments like Treasury bills and bonds.
To maintain community trust, EF will publish quarterly reports detailing asset performance, positions, and major events, adding transparency after recent Ether sales stirred backlash.
With ETH still 46% below its 2021 high and lagging behind BTC and SOL, this revamped strategy signals EF’s long-term commitment. By directly supporting “Defipunk” principles and ecosystem builders, the Foundation appears to be setting the stage for Ethereum’s next growth chapter.
The Ethereum Foundation is a nonprofit that supports Ethereum’s development, ecosystem growth, and long-term sustainability.
Ethereum was founded in 2015 by Vitalik Buterin, Gavin Wood, Charles Hoskinson, Anthony Di Iorio, Joseph Lubin, and others.
EF is optimizing treasury use to extend its 2.5-year runway and ensure efficient funding during a critical 18-month period.
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