The Ethereum Foundation, the non-profit organization supporting the Ethereum network, has for the first time released a report detailing its portfolio holdings. The 28-page report comes as the Foundation seeks to explain its vision to the community and improve transparency on several topics with it.
Financial details in the report
The foundation revealed that it held a total of $1.6 billion in Treasury holdings as of March 31 of this year. In this wallet, the Foundation says that $1.294 billion (80.5%) is made up of Ethereum’s native token, Ether, meaning it controls 0.297% of the total token supply. This number included the 39,168 ETH committed to the customer incentive program. Tokens are distributed to client teams over time.
Of the rest, $302 million is held in non-crypto investments, while Foundation also got its hands on other crypto assets, worth $11 million. As expected, the wallet is heavily populated with ETH, with 99.1% dominance.
The report also confirmed that the Foundation periodically offsets some of its Ether holdings in response to rising prices. This is done to widen the safety margin of the base budget and gain resources to continue funding other projects outside of the base budget, even when there is a pitfall in the market.
Past examples on record were when the Foundation cashed out when Ether hit an all-time high in November last year – selling 20,000 ETH. Further “perfectly timed” selling occurred when it released 35,000 tokens during the peak of the May 2021 market and 70,000 ETH throughout the 2017 bull market.
Invest in building the ecosystem
In 2021, the Foundation injected $48 million into activities to support the development of the ecosystem in internal and external companies, including bonuses, sponsorships and third-party funding such as investments in upgrade solutions. the layer two scale.
Layer one research and development took up the largest share of all spending at $21.8 million, while layer two research cost $1.9 million. $9.7 million was spent on community development, while developers, teams and agencies gobbled up $5.1 million.
The report, however, showed how unique the Ethereum Foundation is – “not a normal top-down organization,” insisting that it is not in charge of controlling Ethereum. He explained that it was just one entity in a larger ecosystem supporting the larger altcoin network.
Another Delay in Upcoming Ethereum Merger Gives Altcoins Opportunity to Rise, Says Crypto Strategist
A widely-followed crypto scholar predicted that Ethereum suffering another merger delay could allow other altcoins to flourish. Crypto analyst Lark Davis suggested in a recent Tweeter that this delay, one of many dating back to 2019, could offer altcoin chains, including Avalanche (AVAX), Cardano (ADA), Polygon (MATIC) and Solana (SOL), a chance to take an increased place in terms of market share.
This is largely due to Ethereum’s unfavorable transaction fees that make it almost difficult to operate on the network, especially with the breadth of alternatives available to users.
The Ethereum Foundation’s Tim Beiko has further shattered community morale after revealing that the planned June date for which the merger would have been shipped is unachievable. Beiko said that although the progress is in the final chapters, it will take a few more months without citing dates.
Beiko had further dampened the mood of the community, pointing out that the merger would not have a huge impact on improving treatment costs. Explaining that the merger would increase Ethereum throughput by 9%, he said the fees would only go down”slightly.” Sharding, which was also supposed to arrive this year, was the update to smooth out the fee environment, but it was pushed back to 2023 to allow developers to work on migrating to proof of stake.
Until all of this happens, it is expected that the top platforms offered by competing cryptocurrencies will continue to bite into Ethereum’s position in the market.
Montenegro Seeks To Develop Regulated Crypto Hub, Grants Citizenship To Vitalik Buterin
Ethereum co-founder Vitalik Buterin is now Montenegrin, confirmed briefing RTCB Last week. Montenegro aims to support crypto and blockchain innovation, and Prime Minister Zdravko Krivokapić is said to see Buterin receiving this honor as an important step towards achieving this goal – he will help strengthen these efforts.
Buterin has already held discussions with several government officials, including the Prime Minister, on ways to prepare Montenegro for crypto via cryptocurrency regulation.
Earlier this month, on April 7, Montenegrin Finance and Social Welfare Minister Milojko Spajić played host in Buterin at the Future Now! panel discussion that examined the legality of blockchain and smart contracts, among other issues.
The event, which also featured University of Memphis professor Boris Mamlyk and Ethereum Foundation researcher Vlad Zamfir, discussed how to build a community around blockchain technology, where members can verify identities to avoid crypto crime.
Boris Mamlyk, in fact, has suggested that Decentralized Autonomous Organizations (DAOs) could be used to verify identities. Yet Buterin insists that there is no “one line magic principleto address the threat posed by crypto crime.
To learn more about Ethereum, see our Investing in Ethereum guide.