Ethereum Foundation Considers Staking $1B ETH
Vitalik Buterin, co-founder of Ethereum, recently suggested that the Ethereum Foundation is exploring the possibility of staking its vast reserves of ETH, which are currently valued at nearly $1 billion.
This comes amid mounting criticism of the foundation’s perceived lack of direct involvement in the Ethereum ecosystem. Many have expressed disappointment with the foundation’s activities, which, according to Josh Stark, have primarily included selling tokens, distributing grants, and organizing events.
Ethereum community members, such as investor Eric Conner, have proposed that the foundation consider staking its ETH to generate rewards for operational expenses, such as employee salaries and additional grants.
Buterin responded to the concerns on X, explaining that the foundation had avoided staking due to regulatory risks and the complications that could arise during network forks. He highlighted that staking requires choosing a chain to avoid penalties, and unstaking quickly enough to prevent slashing could prove challenging. However, he mentioned that the regulatory landscape has improved, and the foundation is now reconsidering the idea of staking its ETH holdings.
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Crypto Giants Donate Over $10 Million to Support Trump’s InaugurationAs of late 2024, the Ethereum Foundation holds 269,000 ETH, worth roughly $891 million, representing 0.26% of the total Ethereum supply. If the foundation were to stake its holdings on platforms like Lido Finance, it could generate an annual yield of approximately $26.2 million. However, this amount falls significantly short of the $134.7 million the foundation spent in 2023, suggesting that staking alone may not be enough to support its operations.
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