Ethereum Foundation Announces Financial Policy, Aims to Reduce Operational Expenses to 5% Long-Term Benchmark Over Five Years

BlockBeats News, June 5th, the Ethereum Foundation released a Fiscal Policy on its official blog. The mission of the Ethereum Foundation (EF) is to strengthen the Ethereum ecosystem and uphold its longstanding, uncompromising core objective: to achieve "applications that run as expected without any possibility of downtime, censorship, fraud, or third-party interference."

The role of the EF Treasury is to support the Foundation's long-term autonomy, sustainability, and legitimacy. The Ethereum Foundation (EF) expects to continue as a long-term steward of the ecosystem, but its scope of responsibility will gradually narrow. By 2025, we plan to spend about 15% of the treasury funds and intend to maintain a statutory buffer equivalent to 2.5 years of expenditures. The plan is to reduce annual operating expenses roughly linearly over the next five years, eventually reaching a baseline level of 5% for long-term maintenance.

We will frequently reallocate funds between different protocols based on market changes, demand for asset diversification, or new revenue opportunities. Throughout the year, the EF will regularly assess the deviation of fiat-denominated assets in the treasury from the operational buffer target and use this information to decide whether Ethereum needs to be sold in the next three months and the amount to be sold. These Ethereum sales usually occur through fiat off-ramps or on-chain exchanges for fiat-denominated assets. Our current strategy includes independent staking and providing wETH to established lending protocols. The EF may also borrow stablecoins and seek higher returns on-chain.