Ethereum Foundation’s Principal Wallet Holds Approximately $650M, Reveals Senior Executive
The Ethereum Foundation, the primary non-profit entity backing the Ethereum blockchain, is preparing to publish an updated financial report in the near future. A senior official disclosed that the foundation’s primary Ethereum wallet currently contains around $650 million.
Justin Drake, a notable researcher at the Ethereum Foundation, shared insights during an ask-me-anything session on an Ethereum subreddit using the alias “bobthesponge1.” Drake mentioned that the foundation spends approximately $100 million annually and currently has a financial runway of about 10 years, contingent upon the price of ether (ETH), the native token of the blockchain.
Drake confirmed to CoinDesk that “bobthesponge1” is indeed his Reddit account. In the AMA session, he stated, “The EF has a fiat buffer to cover a couple of years of runway. ETH sales were temporarily halted due to regulatory reasons, resulting in the buffer not being replenished until recently.”
The last available data on the Ethereum Foundation’s financial holdings was released in March 2022, indicating a total balance of approximately $1.6 billion. This included $1.3 billion in ETH and roughly $11 million in other cryptocurrencies.
At that time, the price of ETH stood at $3,283. Since then, it has decreased by about 30% to $2,296. Over the past two years, the funds have dwindled significantly due to the burn rate and price declines.
In response to a query about a sustainability plan if the foundation exhausts its funds, Drake humorously replied, “I’m not aware of any plan to sustainability :).” The initial report on this development was covered by The Block.
For further information on this topic, you can explore more about Ethereum, ETH, and the Ethereum Foundation.
