- The new Treasury policy of Ethereum Foundation is intended to reduce the expenses from 15% to 5%.
- The foundation will support ‘controlled’ Defi protocols to promote its treasury strategy.
The Ethereum [ETH] Foundation has unveiled a Treasury plan to guarantee sufficient liquidity and significantly reduce operational costs (OPEX) from 15% to 5% (almost 66% reduced).
Under the updated Treasury policy, the EF elaborate”
“Current objectives 15% of the treasury for the annual OPEX more than 2.5 years. We plan to roughly reduce the annual OPEX in the coming five years, ending in a long -term basic line of 5% that is customary for organizations -based organizations.”
Part of the strategy would include conservative approaches to achieve ‘reasonable return’ on its investment without risking the liquidity that could undermine the activities of EF.
EF to use Defi for better returns
HSIAO-Wei Wang, a director of the EF, noted That they prefer ‘controlled’ Defi protocols for reasonable returns on the foundation of the foundation.
“We prefer controlled Defi-Protocols tested by fighting and compiled trust. Instead of having to chase high yields, we focus on conservative strategies with high liquidity and low system risk.”
These would include tokenized RWAs, liability -related reserves and liquidity assets in the short term, Wang added.
But he emphasized that they would only concentrate on Defi-Protocols that move forward ‘defipunk “values privacy, decentralization and self-sovereignty. Different Market Guards greet The update as a bullish.
From the end of 2024 the EF $ 970.2 million In his treasury divided between crypto-assets ($ 788 million) and non-Crypto-assets ($ 181 million), at the time. ETH in particular accounted for 99% of his crypto reserves.
Source: Arkham
At the time of the press, Arkham Intelligence data showed that the Foundation had 216.15k ETH worth $ 565.18 million.
The Treasury update follows an aggressive revision in the non-profit organization and solid interest In the ETH company strategy.
In fact, the company spare has refurbished 981K ETH, worth more than $ 2.5 billion, parallels with strategy-guided bitcoin [BTC] Accumulation of razing.
Will the FOMO drive ETH value up? Certainly, if the market sentiment remains positive.
According to Glassnode, the realized ETH DOP rose from $ 240 billion to $ 247.5 billion, which means that $ 7.5 billion capital flowed into the Active Between May and the beginning of January.
In other words, the current range of $ 2.3k $ 2.8k has fueled a strong accumulation.
Source: Glassnode
For analyst Mathew Hyland, ETH was with regard to an outbreak, with the tight narrowing of the Bollinger tires. In the case of an upward outbreak, the psychological level of $ 3K can be tagged.
Source: Mathew Hyland/X