According to ShibDaily, the Ethereum Foundation has unveiled a new treasury strategy aimed at improving transparency and structure in resource allocation, as it continues to support Ethereum's decentralized finance (DeFi) ecosystem. In a recent blog post, the Foundation detailed its updated financial policy, which will connect daily expenses and cash needs to its holdings and sales of Ether. This initiative is intended to strengthen the foundation's fiscal stability as it enters what it describes as a crucial 18-month period for the Ethereum network.
On June 4, a director from the foundation mentioned that the organization will regularly reassess its annual operating costs, calculated as a percentage of its treasury, along with its financial runway. These evaluations will take into account market conditions and feedback from the Ethereum community, aiming to align short-term spending with the foundation's broader, long-term vision. Ethereum Foundation Co-Executive Director Hsiao-Wei Wang cautioned that the organization faces a 2.5-year runway before its cash reserves are exhausted, marking the next 18 months as a critical period for strategic resource deployment and expanded support for the Ethereum ecosystem. "This policy reflects our belief that 2025-26 are likely to be pivotal for Ethereum, necessitating enhanced focus on critical deliverables," Wang stated.
In response to increasing scrutiny from the Ethereum community, the Foundation has adopted a more stringent approach to managing its funds, indicating a shift toward greater financial accountability. The updated policy aims not only to stabilize internal operations but also to restore credibility with stakeholders observing how the organization manages its resources. As part of its renewed transparency efforts, the Foundation plans to publish detailed quarterly and annual reports, revealing its asset allocations, investment outcomes, and significant updates. As Ethereum enters a phase of intensified development and strategic funding, the Foundation's renewed emphasis on fiscal discipline could set a standard for how decentralized organizations handle accountability. By aligning its treasury strategy with evolving community expectations, the Ethereum Foundation seeks to establish a more resilient financial base—one that can sustain innovation while reinforcing trust in the broader ecosystem.
