The Foundation backing the Ethereum blockchain has laid out a new treasury policy to ensure it allocates resources efficiently while supporting its DeFi ecosystem.
The Ethereum Foundation is adopting a more structured and transparent treasury policy that ties operational costs and cash needs to its Ether reserves and sales to strengthen its financial position as it anticipates a pivotal 18 months ahead.
Its annual operating cost — measured as a percentage of the EF’s treasury — and the number of years of runway will be reassessed regularly, factoring in market dynamics and community input to ensure the foundation’s short-term operations remain aligned with its long-term strategy, one of the foundation’s directors said on June 4.
Hsiao-Wei Wang said the Ethereum Foundation currently only has 2.5 years before it runs out of cash, setting the stage for a crucial 18 months as it seeks to deploy resources more deliberately and provide more ecosystem support:
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