Foundation sets a 15% cap on annual spending and aims for a 2.5-year reserve buffer
ETH holdings adjusted based on fiat needs and market conditions
DeFi investments will focus on security, decentralization, and high liquidity
The Ethereum Foundation (EF) has unveiled a comprehensive treasury policy to ensure long-term financial stability and support for the Ethereum ecosystem. Key features include a 15% cap on annual spending, ETH-to-fiat conversion strategies, and a framework for conservative DeFi participation.
In a blog post shared on X, EF says the new approach reflects a shift toward sustainable, mission-aligned asset management inspired by endowment-style practices used by nonprofit institutions.
Spending Caps and ETH-to-Fiat Strategy Detailed
The Ethereum Foundation will limit its operational spending to no more than 15% of its total treasury value each year with the goal to maintain reserves that can sustain 2.5 years of operations under current cost structures.
Over the next five years, EF intends to lower the cap to 5%, aligning its financial posture with long-term sustainability models.
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