Ethereum Foundation Unveils New Treasury Policy With 15% Opex Cap

The Ethereum Foundation (EF) unveiled a revised treasury policy aimed at bolstering its long-term sustainability and transparency. This Swiss non-profit organization, a cornerstone of the Ethereum ecosystem, manages a substantial ETH holding acquired at Ethereum’s inception. The new policy outlines a multi-pronged approach to treasury management.

A key element is the allocation of operational expenses (opex). The EF plans to dedicate 15% of its treasury annually to opex, maintaining a 2.5-year reserve buffer. This percentage will gradually decrease to a 5% baseline over five years, reflecting a strategic focus on critical deliverables, particularly in 2025-26.

To mitigate risks associated with market volatility, the EF will diversify its holdings, including occasional fiat purchases. Periodic ETH sales will also occur, but these decisions are driven by operational needs and risk mitigation, not speculation. The EF emphasizes that these sales are not endorsements or anti-endorsements of particular projects, but rather responses to market conditions, diversification strategies, and new yield opportunities.

Enhanced transparency is another central theme. The foundation commits to publishing quarterly financial reports to its board and annual reports publicly. Their October 31, 2024 report revealed a treasury of $970.2 million, a 39% decrease from the previous report.

This policy update addresses past controversies surrounding token-rich crypto foundations. The EF’s actions come in response to community concerns about opaque operations, compensation, and vaguely defined responsibilities. Recent incidents, such as researchers accepting token allocations from Ethereum-based projects, highlighted the need for greater transparency and conflict-of-interest mitigation. The foundation’s recent restructuring, including layoffs within its research arm, also reflects its commitment to adapting to evolving needs. The policy underscores the EF’s dedication to supporting the Ethereum ecosystem’s long-term growth and stability within a more transparent and accountable framework.