TLDR
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Ethereum Foundation rolls out a sustainable treasury model focused on privacy, DeFi, and minimal ETH selling.
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EF’s new strategy backs decentralized, privacy-first tools while reducing market impact through strategic ETH management.
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EF introduces a 5-year treasury plan with DeFi staking, risk control, and transparent ETH reserve practices.
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EF aligns spending with open-source values, boosting privacy-preserving DeFi and reducing fiat conversion pressure.
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With leaner spending, quarterly updates, and Defipunk DeFi picks, Ethereum Foundation reinforces its ecosystem role.
The Ethereum Foundation (EF) has introduced a comprehensive treasury strategy to support the long-term development of DeFi and privacy tools. The new plan prioritizes transparency, operational efficiency and alignment with Ethereum’s long-standing principles. The foundation will balance sustainability with strategic ecosystem interventions during market downturns.
Treasury Strategy Focuses on Sustainability and Lower Market Impact
Ethereum Foundation will maintain a treasury buffer of 2.5 years of operating expenses and gradually reduce annual spending to 5% over five years. This reduction will happen linearly and reflect the organization’s shift toward long-term sustainability. The treasury management plan will ensure limited ETH sales and protect the market from unnecessary pressure.
The Ethereum Foundation has published its treasury policy, outlining a strategy to maintain a 2.5-year operating expense buffer and cap annual spending at 15% of total treasury assets, with a planned reduction to a 5% long-term target over the next five years. A structured…
— Wu Blockchain (@WuBlockchain) June 4, 2025
The policy will use two variables, annual expenses and reserve years, to guide asset sales and determine required ETH reserves. EF will sell ETH only when its fiat-denominated holdings fall short of the targeted buffer. The foundation plans quarterly evaluations to realign treasury activity with broader ecosystem goals.
EF will rely on solo staking and yield-bearing DeFi protocols to cover operational needs. These moves will help avoid large token dumps and generate on-chain returns. The treasury team will continually assess risks like contract bugs and liquidity problems.
DeFi Deployments to Support Privacy and Open Infrastructure
The Ethereum Foundation will expand its DeFi exposure through tokenized real-world assets, lending protocols and staking strategies. These allocations will follow strict criteria including security audits, permissionless access and protocol decentralization. The EF’s goal is to back privacy-preserving and cypherpunk-aligned infrastructure across Ethereum.
EF defines “Defipunk” as a framework for measuring protocol alignment with Ethereum’s core values of privacy, self-custody and open-source development. Supported protocols must offer privacy at the transaction and data levels and avoid centralizing elements such as admin keys. The EF will also support protocols for developing decentralized user interfaces.
The EF intends to reallocate funds frequently based on market conditions, yield changes, or evolving security risks. These actions will not be interpreted as disapproval of any protocol but as proactive asset management. This approach ensures capital flows to responsible, robust DeFi solutions that uphold network security.
Internal Reforms and Transparency Drive Ecosystem Confidence
EF has restructured its leadership and internal reporting systems to enhance treasury transparency and accountability. A finance team will prepare quarterly reports to show performance, asset allocation and strategic activities. Annual reports will further disclose ETH deployment and fiat to Crypto distributions.
All treasury-related activities will align with Ethereum’s broader mission to build an open, decentralized society. The EF plans to adopt privacy-preserving tools and open-source infrastructure internally. Staff managing the treasury are expected to upskill in cryptographic tools and privacy-enhancing software.
The foundation has pledged to use its position to encourage privacy innovation through funding and public advocacy. By setting these internal and external standards, EF aims to maintain its role as a long-term steward. These changes mark a decisive step in Ethereum’s evolution toward sustainable and privacy-focused finance
