- The Ethereum Foundation sold 100 ETH for DAI to support projects and maintain operational reserves.
- Vitalik Buterin highlighted regulatory concerns as a reason for avoiding staking ETH in DeFi.
The Ethereum Foundation has sold 100 ETH for 336,000 DAI, a stablecoin linked to the US dollar. Within the crypto community, this deal has spurred debates on the financial policies of the Foundation.
Some have questioned why the Foundation chose to stake the ETH assets and generate passive revenue using decentralized finance (DeFi) platforms instead of selling the ETH interests.
Ethereum Foundation: Cautious Stance on Staking and Hard Forks
Dealing with these issues, Ethereum co-founder Vitalik Buterin clarified that although the Foundation is actively investigating staking possibilities, past caution has been used due to legal uncertainty and possible consequences.
They have specifically tried to avoid circumstances whereby controversial hard forks could compel them to adopt sides, a situation that might have wider effects on Ethereum’s ecosystem.
The Ethereum Foundation has offloaded a sizable quantity of ETH during this sale, which fits a larger trend noted over the past year. According to CNF, the Foundation sold 4,566 ETH starting in January 2024, creating around $12.96 million in liquidity.
The company still has over $900 million worth of ETH, shown by the sales nonetheless, which highlight its significant reserves.
Usually, these kinds of transactions are seen as ordinary ways to support continuous projects and keep operational stability. They also beg issues concerning the timing and need of such sales, particularly in times of market instability.
Selling ETH instead of stake has attracted interest about the possible advantages and risks connected with DeFi staking. Although staking offers a consistent income source, it also exposes one to operational risks connected to smart contract weaknesses and market swings.
Furthermore, this most recent purchase fits the increasing excitement around Ethereum’s next Pectra update. The update is projected to bring notable increases in network efficiency and scalability, hence confirming Ethereum’s leadership among blockchain systems.
The Foundation’s financial policies, including regular ETH sales, are probably meant to assist public initiatives aiming at the expansion of the ecosystem as the launch date gets closer.
Previously, CNF has noted that the Ethereum Foundation has kept selling ETH to support public projects and increase reserves in line with this. On December 10, 2024, their most recent unload turned 100 ETH into DAI.
Meanwhile, as of writing, ETH is swapped hands at about $3,309.95, up 3.32% over the last 24 hours and 7.54% over the last 7 days.
