Questions are raised as Ethereum Foundation's $100 million budget is examined closely 🧐

Understanding the Ethereum Foundation’s Budget and Spending Practices

The Ethereum Foundation, the non-profit organization that supports the development of the Ethereum blockchain, is currently under scrutiny for its budget and spending practices. Recent disclosures and actions have raised questions about transparency and resource allocation within the Ethereum ecosystem. Here are some key insights into the Foundation’s financial activities:

Increased Budget and Vitalik Buterin’s Salary

• The Foundation’s annual budget has grown significantly from $41 million in 2021 to around $100 million in 2024.

Aya Miyaguchi, the Executive Director of the Ethereum Foundation, explained that the budget mainly consists of grants and salaries.

• Vitalik Buterin, the co-founder of Ethereum, disclosed that he receives an annual salary of approximately $140,000 from the Foundation.

Recent Actions and Community Concerns

• The Foundation transferred $94 million worth of ETH to the Kraken cryptocurrency exchange as part of treasury management activities.

Some community members questioned this decision, especially regarding the timing of ETH sales and their potential impact on market performance.

• Josh Stark from the Ethereum Foundation addressed concerns by providing insights into the organization’s spending breakdown for 2023.

• Concerns have been raised about the Foundation’s perceived lack of support for decentralized finance (DeFi) projects.

Response and Future Plans

• In response to the community’s feedback, Vitalik Buterin clarified his support for sustainable applications within the Ethereum ecosystem.

• The Foundation has committed to releasing a detailed spending report covering 2022 and 2023 to provide more transparency into its financial activities.

Hot Take: What’s Next for the Ethereum Foundation?

As the Ethereum Foundation faces increased scrutiny over its budget and spending practices, the community awaits the upcoming comprehensive spending report for more insights into the organization’s financial activities and allocation of resources.