VanEck to Allocate 10% of Ethereum Futures ETF Profits to Core Developers
Global investment firm VanEck has announced that it will donate 10% of all profits generated from its upcoming Ethereum futures exchange-traded fund (ETF) to Ethereum’s core developers for a period of ten years. The announcement was made on September 29, 2023, via social media platform X (previously known as Twitter).
Donations to Protocol Guild
The recipient of this charitable act will be Protocol Guild, an organization dedicated to the development and improvement of the Ethereum protocol. The guild plays a crucial role in proposing upgrades, ensuring security, and facilitating discussions within the Ethereum ecosystem.
Equitable Sharing of Earnings
VanEck believes it is fair for investment managers to share a portion of their earnings with the community responsible for developing the cryptocurrency protocol. The firm encourages other asset managers and ETF issuers to follow suit and reciprocate the benefits gained from Ethereum’s core contributors.
Supporting the Ethereum Network
VanEck joins other organizations and communities in the crypto space that have been supporting the Ethereum network, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO.
Donations to Protocol Guild
A report by Cointelegraph reveals that over $12 million has already been donated to Protocol Guild’s mainnet through more than 4,846 contributions. These funds are distributed among guild members based on their contributions’ duration.
Ethereum Improvement Proposal EIP-4844
The core developers of the Ethereum network are focusing on EIP-4844, also known as Proto-Danksharding. This upgrade aims to introduce a new transaction type to reduce transaction costs for layer-2 solutions.
Launch of Ethereum Futures ETF
VanEck announced its preparation to launch an Ethereum Futures ETF (EFUT) on September 28, 2023. The fund will invest in standardized cash-settled ETH futures contracts listed on CFTC-approved exchanges, primarily the Chicago Mercantile Exchange.
Hot Take: VanEck’s Contribution to Ethereum’s Core Developers
VanEck’s decision to allocate a portion of its Ethereum futures ETF profits to Ethereum’s core developers demonstrates the firm’s commitment to supporting the growth and development of the Ethereum network. By sharing their earnings with the community responsible for the cryptocurrency protocol, VanEck sets an example for other asset managers and ETF issuers in the traditional finance industry. This initiative highlights the importance of recognizing and reciprocating the contributions made by core contributors in decentralized ecosystems like Ethereum. VanEck’s donation to Protocol Guild adds to the growing list of organizations and communities that are actively supporting and strengthening the Ethereum network.
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