The Ethereum Foundation is set to soon release a financial report that addresses growing concerns within the community over its recent spending and financial transparency.
Ethereum Foundation to Release Financial Report, Holds $650 Million in Main Wallet
Ethereum researcher Justin Drake, under the pseudonym “bobthesponge1,” shared the update during a session on the r/ethereum subreddit. He explained that the foundation holds around $650 million in its main Ethereum wallet and spends around $100 million annually.
Drake noted that the Foundation’s budget strategy aims to spend 15% of its remaining funds each year, providing a financial flow of approximately 10 years depending on fluctuations in the price of Ethereum.
Ethereum co-founder Vitalik Buterin also confirmed this approach, explaining that the Foundation’s share of the ecosystem will decrease over time, but the current plan allows it to operate indefinitely.
Community scrutiny has intensified after recent major Ethereum transactions from the Foundation, including a transfer of 35,000 ETH (approximately $94 million) to the Kraken exchange, as reported by blockchain analytics firm Lookonchain.
The concerns arose after community members at X expressed frustration over a lack of prior communication.
In response, the Foundation’s executive director, Aya Miyaguchi, explained that the funds are part of “treasury management,” primarily for grants and salaries, some of which require fiat currency.
He added that regulatory challenges have delayed treasury activities, but future transactions will be more transparent and gradual sales are planned.
*This is not investment advice.
