Ethereum Foundation To Release Updated Financial Report Soon

According to CoinDesk, the Ethereum Foundation, the primary non-profit organization supporting the Ethereum blockchain, is preparing to release an updated financial report in the near future. A top official from the organization disclosed that its main Ethereum wallet currently holds approximately $650 million. Justin Drake, a notable researcher at the Ethereum Foundation, shared during an ask-me-anything session on an Ethereum subreddit that the foundation spends around $100 million annually and has a financial runway of about ten years, contingent on the price of ether (ETH), the blockchain’s native token. Drake confirmed to CoinDesk that his Reddit handle is 'bobthesponge1.' Drake mentioned that the Ethereum Foundation has a fiat buffer to cover a couple of years of operational costs. He noted that ETH sales were temporarily halted due to regulatory reasons, which delayed the replenishment of this buffer until recently. The last financial update from the foundation was in March 2022, when the EF treasury reported a balance of about $1.6 billion, including $1.3 billion in ETH and approximately $11 million in other cryptocurrencies. At that time, the price of ETH was $3,283, but it has since decreased by about 30% to $2,296. Over the past two years, the foundation's funds have significantly decreased due to its spending rate and the decline in ETH prices. When asked about a sustainability plan in case the foundation runs out of funds, Drake responded that he was not aware of any such plan. The news was initially reported by The Block.