Ethereum Foundation Treasury Increases Share of Non-Cryptocurrency Assets to 19%

The Ethereum Foundation (EF) Treasury, which funds the development of the Ethereum network, has disclosed the fund’s total assets, including a significant fifth in non-cryptocurrency assets.

The fund released a report detailing that its $1.6 billion treasury is made up primarily of Ethereum (ETH), but with an astonishing 18.8% in non-cryptocurrency assets.

Overall, the non-profit organization EF, which manages funds for Ethereum development, owns approximately 0.3% of the current total ETH supply, which is approximately $1.3 billion, which can be verified on Etherscan. However, his non-crypto holdings make up a significant portion of $302 million.

The April 2022 report is the first report from the Foundation that describes what it holds in treasury and how it allocates spending, including grant funding to various Ethereum-based projects. Overall, EF appears to have very strong financial strength, spending just $48 million in 2021.

Ethereum Foundation Treasury as of April 2022.

The report states that he increased his non-crypto holdings to $302 million from a previously undisclosed amount. This amount is intended to provide a “greater margin of safety” in an attempt to protect it from a downturn in the cryptocurrency market.

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The fund did not respond to a request to disclose details of these non-cryptocurrency assets. However, Ethereum researcher Justin Drake suggested in a tweet that non-cryptocurrency assets are just fiat reserves.

“The Ethereum Foundation spent $48 million in 2021. He has 350,000 ETH (worth $1 billion) and $300 million in fiat,” Justin Rake suggested on April 18, 2022.

The foundation spent $21.8 million on Tier 1 (L1) research and development, the largest share of its spending last year. This amount does not include the Customer Incentive Program (CIP), which is an ongoing program where nine specific node operators are rewarded with 39,168 ETH, or $132 million at the time of writing, on a fixed schedule.

Another $9.7M was spent on community development, $5.9M on Ethereum as a developer platform, $5.1M on international operations, $3.6M on zero-knowledge (zk) protocol research and development and $1.9 million for Layer 2 (L2) research and development.

“As far as I know, this is the first time the Ethereum Foundation has publicly detailed all of its treasury holdings. Finally!” wrote one user.

The EF financial report comes out just a few months before the planned merger, when the main Ethereum network moves to the Proof-of-Stake (PoS) consensus algorithm. This is expected to significantly reduce the grid’s energy consumption and its carbon footprint.

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