Ethereum Foundation has made a significant change in its strategy to manage its crypto reserves and started staking some of its ETH assets. In the first stage, the organization transferred 2,016 ETH to the network as a validator and aims to direct 70,000 ETH in total to staking transactions. It is planned that the rewards obtained from staking will be transferred directly back to the treasury of the foundation.
New Financing Model in the Crisis Period
With this decision, the Ethereum Foundation aims to create sustainable financing sources in a period when uncertainty is high in the markets. Recently, Ethereum co-founder Vitalik Buterin’s sale of approximately $7 million worth of ETH while the market was declining led to discussions about treasury management and sell signals in the ecosystem. The foundation’s focus on staking policy emphasizes the active evaluation of existing assets instead of token sales.
Staking Revenues Will Contribute to Ecosystem Supports
This step, taken within the scope of the new treasury policy announced last year, is also compatible with Ethereum’s proof-of-stake architecture. While the Foundation increases the security of the network through its own validator infrastructure, it also diversifies the resources to support ecosystem projects, developer tools and community-oriented work. With the recently expanded Ecosystem Support Program, allocating more resources to open source software, protocol research and community development has come to the fore. Thus, it is stated that staking revenues will contribute to the stable financing of these programs in the long term.
Decentralized Structure and Client Diversity are in the Foreground
The Foundation bases its efforts on decentralization and client diversity when creating its validator infrastructure. The infrastructure was built with open source tools developed by Attestant. Among these, Dirk prevents risks that may originate from a single point by distributing the signing processes among different countries. Vouch, on the other hand, increases client diversity by allowing different execution and consensus clients to be used together.
Minority clients are also included in the Validator structure, and the infrastructure consists of a combination of hosted services and physical hardware in different regions. Thus, it is aimed to realize the network security, redundancy and decentralized structure that the ecosystem has emphasized for a long time.
Ethereum Foundation is a non-governmental organization headquartered in Switzerland that aims to support the Ethereum ecosystem in technical, financial and social dimensions. The institution operates in many areas, from the core development processes of the network to research and funding for the ecosystem.
In its statement, the Ethereum Foundation stated that the revenues generated through staking will be transferred directly to the treasury of the foundation and these resources will be used in ecosystem support.
With the transition to proof-of-stake architecture, validator and client diversity has become a critical element in the Ethereum network. It is thought that the steps taken by the Foundation in this direction can set an example for other corporate participants.
The new staking plan launched supports the foundation’s vision of long-term financial sustainability and contributing to the technical development of the network.
