Key Takeaways from the Ethereum Foundation Report
- Core Values: Long-term thinking, self-limiting practices, and value stewardship guide the foundation's work.
- 2022 Expenditures: $105.4M total, with 30.4% ($32.1M) dedicated to L1 research.
- 2023 Expenditures: $134.9M (28% increase), primarily funding new organizations (35.2%).
- Current Treasury: $970.2M total, including $788.7M in crypto assets (99.45% ETH).
- ETH Holdings: Represents 0.26% of total ETH supply as of October 2024.
- Ecosystem Funding: $222B across projects, with $497M deployed in 2022-2023.
The Ethereum Foundation's Guiding Principles
The Ethereum Foundation (EF) operates through autonomous teams that address ecosystem needs through:
- Long-term Perspective: Focusing beyond market cycles
- Intentional Restraint: Measuring success by ecosystem achievements
- Value Preservation: Maintaining Ethereum's community-driven ethos
👉 Discover how Ethereum's infrastructure supports these values
Financial Overview: 2022-2023 Expenditures
2022 Allocation Breakdown
| Category | Percentage | Amount |
|---|---|---|
| L1 Research | 30.4% | $32.1M |
| New Organizations | 27.1% | $28.6M |
| Community Growth | 18.5% | - |
| Internal Operations | 8.1% | - |
| Developer Tools | 7.9% | - |
2023 Funding Shifts
- New organization support increased to $47.4M (35.2%)
- L1 research maintained strong funding at $34.7M (25.7%)
- Applied ZK research grew to 11% allocation
Treasury Management Strategy
$970.2M Total Assets:
- $788.7M cryptocurrency (81.3%)
- $181.5M traditional investments
ETH-Centric Approach:
- 99.45% of crypto holdings in ETH
- Represents 0.26% of total ETH supply
Risk Management:
- Regular ETH sales to ensure stable funding
- Increased fiat reserves during bull markets
👉 Explore Ethereum's financial ecosystem
Ecosystem Treasury Insights
- $222B Total Value: Across Ethereum-based projects
- Funding Deployment: $497M supporting community initiatives (2022-2023)
- Composition: Primarily native project tokens maintaining ecosystem development
FAQ: Ethereum Foundation Finances
Q1: Why does the foundation hold mostly ETH?
A: The foundation believes in Ethereum's long-term potential and aligns its treasury with the ecosystem's native asset.
Q2: How does the foundation manage financial risk?
A: Through strategic ETH sales and building fiat reserves during favorable market conditions.
Q3: What percentage of ETH supply does the foundation control?
A: 0.26% of total circulating supply as of October 2024.
Q4: How much did ecosystem funding increase from 2022 to 2023?
A: Total expenditures grew by approximately 28%, from $105.4M to $134.9M.
Q5: What are the foundation's primary funding categories?
A: Core development (L1 research), new organization support, and community growth initiatives.
Q6: How does the foundation measure success?
A: By Ethereum ecosystem achievements rather than foundation metrics.