The post Ethereum Foundation’s formulates new strategy for income increase appeared on BitcoinEthereumNews.com.

The Ethereum Foundation (EF) disclosed a significant change in its financial management practices. On June 4, the foundation unveiled a new plan outlining how to invest its reserves, fund DeFi protocols, and develop privacy standards that align with Ethereum’s core principles of neutrality and self-sovereignty. The more influence it has globally, the more attention it receives from institutions, and this change is encouraging a more stable and organized way for capital to engage with ETH. The foundation’s treasury and multi-year reserve spending policy are linked to operating expenses through a prescribed formula. The foundation has taken a big step away from its historically more laissez-faire approach to capital by introducing specific rules regarding the sale of Ethereum, the holding of stablecoins, and how on-chain investments will be made. EF’s new strategy allows for exposure to on-chain opportunities, increasing income Ethereum Foundation’s new strategy is pushing for more direct treasury management, which needs to balance yield generation, risk, and ideological mandates. At the same time, the growth has led to additional complexity, volatility, and management responsibility. It is expected that there will be a big impact not only on Ethereum itself but also on the network community due to the security vulnerability to which the network was recently vulnerable. The Foundation has created a 2-variable treasury function for risk, reckoning fiat reserves, which are 2.5 years of the runway by a 15% stable annual cost. That gives an amount of ETH that can be safely sold to fiat or stable assets. Treasury operations will become more counter-cyclical, with stronger help during market declines and a balanced approach during rising markets. Although Ethereum is still the main part of the treasury, the new guidelines from EF allow for increased exposure to on-chain opportunities like staking, lending, tokenized real-world assets, and select DeFi protocols. EF…

---

Filed under: News - @ June 5, 2025 2:21 am