Ethereum Foundation Unveils $970M in Assets in 2024 Financial Report
TLDR
The Ethereum Foundation holds $970.2M in assets as of October 2024, with $788.7M in crypto 99% of crypto holdings are in ETH, showing a strong commitment to the ecosystem. It spent 30.4% ($32.1M) on Tier-1 R&D in 2023.
The Ethereum Foundation (EF) released its 2024 financial report today, showing total assets of $970.2 million as of October 31, 2024.
The report details the foundation's holdings and spending strategies, highlighting its continued commitment to the Ethereum ecosystem.
According to the 27-page document, the foundation's assets are divided between $788.7 million in cryptocurrency holdings and $181.5 million in non-crypto investments and assets.
A key revelation from the report shows that 99% of the foundation's crypto treasury is held in ETH, which represents roughly 0.26% of Ethereum's total supply.
The foundation explained its rationale for maintaining such a large ETH position;
“We choose to hold the majority of our assets in ETH. EF believes in Ethereum's potential, and our ETH holdings represent that long-term view.”
To ensure sustainable operations, the foundation has implemented what it calls a “conservative treasury management policy.”
This approach involves the regular sale of ETH to maintain sufficient resources for future operations, especially during market downturns.
The report outlines the foundation's strategic approach to treasury management, “programming” fiat savings during bull markets to support spending during bear markets.
This method aims to ensure that the organization can continue to support essential public goods for the Ethereum ecosystem regardless of market conditions.
Looking at the Foundation's 2023 expenditures, the largest allocation is Layer-1 research and development initiatives, accounting for 30.4% of expenditures, or $32.1 million.
The second highest category is financial support for new institutions, receiving 27.1% of the budget, which is 28.6 million dollars. These funds primarily support organizations dedicated to advancing the Ethereum ecosystem.
The Foundation has introduced a new benefit policy by 2024, setting boundaries for how team members interact with the wider ecosystem.
This guideline is scheduled for review after its first year of implementation to include feedback and possible adjustments.
Different groups within the base contribute to different aspects of ecosystem development. The Rigorous Incentives Group (RIG) focuses on the mechanical design for Ethereum and the study of cryptocurrencies.
The protocol support team oversees network maintenance, while the devcon team organizes events that promote collaboration and education in the community.
The Foundation's grant program continues to play a vital role in ecosystem development. Several organizations are supported by these grants, including Argot Collective, Geodework, L2BEAT, Nomic Foundation and 0xPARC. Foundation teams are actively involved in the approval and review processes for these grants.
As of the release of the report, Ethereum's native token ETH is trading near the $3,000 mark, showing a strong market performance with a 16.2% increase over the past week.
This growth outpaced Bitcoin's 9.4% gain over the same period, although ETH is about 40% below its all-time high of $4,890.
The Foundation's Executive Director Aya Miyaguchi highlighted the organization's efforts to grow the Ethereum ecosystem through various initiatives and support programs. The report emphasizes the foundation's role in ensuring financial stability and sustaining long-term ecosystem development.
The foundation's first short-lived debut, titled ‘Mekong', is a testament to the ongoing technical advancements in the ecosystem. According to the latest market data, ETH traded at $2,901 between $2,781.30 and $2,954.87 in daily trading.
