The post Ethereum Foundation’s Insights on ETH Value Growth and Layer 1 Expansion from Recent AMA appeared on BitcoinEthereumNews.com.

The Ethereum Foundation hosted its 12th AMA on Reddit, addressing crucial community concerns regarding budget transparency and allocation strategies. The panel provided insights into Ethereum’s progress in various areas such as Rollups, ZK advancements, and Layer 1 scalability. Notably, discussions on the value appreciation of ETH assets captured significant attention during the session. This article delves into the Ethereum Foundation’s recent AMA, highlighting critical insights on budget management and the future of ETH value, which is vital for investors and stakeholders. Budget Transparency and Financial Reserves of the Ethereum Foundation During the AMA, Ethereum Foundation researcher Justin Drake revealed that the foundation’s annual expenditure hovers around $100 million. With current prices, the foundation’s main Ethereum wallet holds approximately $650 million. Drake projected that, under these financial circumstances, the foundation could maintain operations for an estimated ten years, provided that Ethereum’s price volatility does not have adverse effects on its reserves. Budget Strategies and Sustainability Vitalik Buterin emphasized a cautious budget strategy, suggesting that the foundation aims to spend around 15% of its remaining funds each year. This approach not only ensures the foundation’s longevity but also suggests a gradual dilution of its influence within the ecosystem as it allocates resources to new developments and projects. Scaling Solutions: Progress in Layer 1 and Layer 2 When asked about future plans for expanding Layer 1 infrastructure amidst the growth of Layer 2 solutions, Justin asserted that employing SNARKs (zero-knowledge succinct non-interactive arguments of knowledge) represents a long-term, sustainable strategy. These advancements will allow for increased gas limits without overburdening validators, enabling scalability alongside the existing Ethereum network. Potential of ‘Native Rollups’ Drake also described an innovative concept termed ‘native Rollups’, which would facilitate the creation of programmable shards and assist in managing computation through enhanced EVM pre-compilation options. This would uniquely position…

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Filed under: News - @ September 6, 2024 4:18 am