PANews
PANews|Jun 06, 2025 09:57
The Ethereum Foundation's financial strategy has undergone a significant shift. On June 4th, the foundation released a new fiscal policy, bidding farewell to the passive capital management model and managing reserves in a more structured and transparent manner. The new policy aims to reduce operating costs and regulate ETH sales. The previous sale of ETH by the foundation has sparked community controversy. In the updated asset management strategy, it is explicitly linked to annual operating costs and cash requirements with ETH reserves and sales. We plan to reduce the annual expenditure to asset ratio from 15% to 5% by 2030. At present, the foundation's cash reserves can only be maintained for 2.5 years, and the next 18 months are crucial. At the same time, it is stipulated that ETH will only be automatically sold when the cash reserve is below the 2.5-year expenditure buffer (approximately 37.5% of the vault). In the DeFi ecosystem collaboration, the foundation is implementing new financing strategies, including individual staking, providing wETH to revenue based lending agreements, and possibly borrowing stablecoins to obtain on chain returns through RWA and DeFi allocation. Quarterly and annual reports will be released to publicly disclose asset information. In addition, the policy adopts the "Defipunk" principle to evaluate DeFi protocols, considering privacy as a fundamental civil freedom from various aspects such as access permissions and hosting methods. However, this privacy focused standard differs from the regulatory trend in the US and Europe that emphasizes transparency and compliance. This fiscal policy adjustment will bring new changes to the development of the Ethereum ecosystem.
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