Ethereum Foundation sets operating expenses at 15% of total treasury to ensure reserve strength and financial discipline.
Regular ETH sales and a fiat buffer will support operational sustainability and protect against crypto market volatility.
Increased on-chain activity through staking and DeFi signals deeper integration with Ethereum’s technical and financial roadmap.
The Ethereum Foundation has rolled out a refined treasury policy to improve long-term financial stability while continuing support for the network’s ecosystem. Announced on June 4, 2025, the new policy introduces a disciplined asset-liability strategy designed to manage risk and maintain liquidity.
The updated framework includes regular sales of ETH to build a stable fiat reserve. This marks a shift from the Foundation's earlier reliance on holding ETH as its main asset. The move enables it to predictably meet operational needs and ensures enough liquidity during market shifts.
Operating expenses set to a fixed share of the treasury
The Foundation will cap its annual operating expenses at 15 percent of its total treasury. It also plans to maintain reserves sufficient for at least two and a half years of operational costs. This policy intends to protect the organization from unexpected downturns or volatility in crypto markets.
https://twitter.com/ethereumfndn/status/1930352951459229970
Besides ETH sales, the Foundation will increase its participation in staking and decentralized finance (DeFi) protocols. This approach seeks to diversify returns and strengthen engagement with on-chain activity, while staying aligned with the broader Ethereum ecosystem.
Focus shifts to transparency and financial discipline
The revised policy includes detailed guidelines for crypto and fiat asset management. It emphasizes transparency in treasury operations and aims to set a clear example for other organizations within the Ethereum community. The Foundation also aims to reflect macroeconomic factors in its decision-making.
Hsiao-Wei Wang, a co-Executive Director, expressed that the Foundation intends for its latest shifts to guarantee it will not falter. She mentioned that it is crucial to make long-term plans when you hold assets, because Ethereum is making key changes.
The network is scheduled for major changes.
The updates to the policy reflect changes within the company as it aims for increased scalability on its Layer 1 network. Vitalik Buterin has outlined plans to raise the Ethereum main layer’s capacity tenfold during the next year. The emphasis for these improvements will be on improving how Layer 2 solutions function.
Alongside the treasury update, the Ethereum Foundation has made internal changes such as team reorganization and a rebranding of the Protocol Research & Development unit. These steps support a focused and resilient path forward for the protocol’s evolution.
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