The Ethereum Foundation, the organization overseeing the development of the second-largest blockchain by market capitalization, has announced that it has acquired 50,000 ether worth approximately $165.3 million at the time of writing to join the decentralized finance (DeFi) ecosystem. (ETH) is allocated.
The move will see the foundation set up a 3-of-5 multisig wallet through Safe, which the organization says is “proven to be secure and has a great user experience.” . The first test transaction was sent to lending protocol Aave, one of the largest protocols within the Ethereum ecosystem behind liquid staking protocol Lido.
Joining the DeFi ecosystem could help boost the Ethereum Foundation’s funding, which has fallen 39% in less than three years to $970.2 million as of October 31. The nonprofit holds most of its funding in Ether, which recently dropped to $4. This is the lowest price since the beginning of the year against Bitcoin.
Ethereum has traditionally avoided staking ETH to generate revenue by staking rewards, citing regulatory and neutrality concerns, according to Ethereum co-founder Vitalik Buterin. . At the current CESR composite Ether staking rate, you would be able to generate a yield of 3.31% from your Ether holdings.
Vitalik Buterin confirmed over the weekend that major changes are being made to the nonprofit’s leadership, a process that has been “ongoing for nearly a year.”
Among the stated goals, Buterin said the move will improve the technical expertise of the Ethereum Foundation’s senior management and improve communication and connections between its leadership and stakeholders in the Ethereum ecosystem. , pointed out that it is intended to support app builders more actively.
He also said the foundation is not trying to make “some kind of ideological shift” or actively lobbying regulators, nor is it aiming to become a highly centralized organization. pointed out.