The Ethereum Foundation, one of the main organizations in the Ethereum ecosystem, has decided to stake a portion of its treasury.
The foundation utilizes on-chain solutions developed by Bitwise Asset Management as its infrastructure for the staking process. According to the announcement, the Ethereum Foundation started the staking process by initially depositing 2,016 ETH. The organization’s ultimate goal is to stake approximately 70,000 ETH. At current prices, this amount is worth approximately $140 million.
Cryptocurrency wallets known to be linked to the Ethereum Foundation currently hold $418 million worth of ETH. Of this amount, $354 million is held directly in ETH, while the remainder is held as wrapped ETH on other networks.
At the time of writing, Ethereum staking rewards provide an annual return of 2.77% in ETH terms. This means that the foundation will generate $3.8 million in annual revenue from this staking method in a scenario where the ETH price remains stable.
*This is not investment advice.