The Ethereum Foundation has unveiled a new treasury policy aimed at ensuring long-term sustainability while fostering the continued growth of the Ethereum ecosystem. This policy introduces a refined treasury management framework that balances risk, liquidity, and financial stability, providing clear guidelines for token sales, fiat reserves, and strategic on-chain investments.

Ethereum Foundation’s New Treasury Policy: A Strategic Shift

The updated treasury policy reflects a disciplined asset-liability management approach to safeguard the foundation’s financial health. Historically relying heavily on holding ETH, the foundation will now adopt a more active approach to treasury management. Key components of this strategy include:

  • Regular ETH sales to maintain a stable fiat reserve.
  • Increased utilization of staking and decentralized finance (DeFi) protocols.
  • Setting annual operating expenses at 15% of the total treasury.
  • Maintaining reserves sufficient to cover at least 2.5 years of operations.

This proactive approach is designed to address the anticipated challenges of 2025–2026, a critical period for Ethereum’s ecosystem development. The foundation’s goal is to maintain financial stability and support its ambitious roadmap effectively.

Leadership Insights on the New Policy

Hsiao-Wei Wang, Co-Executive Director of the Ethereum Foundation, underscored the importance of a long-term perspective. She stated:

“The EF is here to stay for a long time and needs a robust long-term treasury management policy. It outlines our approach to macroeconomics, the management of crypto- and fiat-denominated assets, and reflects our commitment to transparency.”

The foundation’s commitment to transparency and sustainability is central to this new policy, which aligns with Ethereum’s overarching mission to innovate responsibly while ensuring its ecosystem’s resilience.

Scaling Ethereum: The Road Ahead

Ethereum co-founder Vitalik Buterin recently announced plans to scale Ethereum’s Layer 1 network by approximately tenfold within the next year. This upgrade aims to enhance scalability without compromising decentralization, ensuring a balanced and steady development trajectory.

The upcoming enhancements will focus on improving the performance and security of Layer 2 solutions, enabling them to operate more efficiently. These technical advancements are expected to solidify Ethereum’s position as the leading blockchain platform, especially for decentralized applications and financial infrastructure.

Organizational Changes to Align with the Vision

In addition to the treasury policy overhaul, the Ethereum ecosystem is undergoing internal restructuring. Recent changes include:

  • Streamlining core operational teams through strategic layoffs.
  • Rebranding the Protocol Research & Development (PR&D) division to better align with the foundation’s evolving goals.

These shifts reflect Ethereum’s broader strategic reset, positioning the network to tackle upcoming challenges while delivering on its long-term vision for scalability, sustainability, and decentralization.

The Ethereum Foundation’s proactive measures, including its revised treasury policy and focus on scalability, are poised to strengthen the ecosystem during a pivotal phase of its evolution. These steps demonstrate a commitment to fostering innovation while ensuring financial and operational stability for years to come.

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