The Ethereum Foundation (EF) has introduced a new capital management and transparency strategy amid market pressure and criticism over recent ETH sales. The next 18 months are being called “pivotal” for the ecosystem’s resilience.
What happened?
EF updated its policy — expenses will now be tied to reserve size and market conditions
The foundation has just 2.5 years of runway left — without stronger yield and control, funds could run out
The main goal: stay solvent until the end of 2026, which EF considers a pivotal moment for Ethereum
What’s changing?
EF will now publish quarterly reports on assets, profits, and spending structure
More active DeFi deployment: 45,000 ETH ($120m) already placed in Aave, Compound, and Spark
Internal dev teams are being streamlined — some staff have already been let go
Why it matters
ETH still lags behind BTC and SOL — 46.5% below its 2021 peak
For the first time in years, EF is openly supporting specific DeFi protocols instead of remaining neutral
The foundation is aiming for long-term sustainability, but the community is calling for more transparency and impact
What do you think about this new direction?
— Smart strategy, long overdue
— Too late, should’ve done this earlier
— Supporting DeFi is the right move for the ecosystem
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