• The Ethereum Foundation has disclosed its financial status, reporting a treasury of $970.2 million as of October 31, 2024.

• This represents a significant decrease of 39% from the $1.6 billion reported on March 31, 2022, the date of the last financial report.

• A substantial portion of the foundation's assets, approximately 81.3%, is held in cryptocurrencies, predominantly in ether (ETH).

• Over the past two years, the foundation has expended around $240 million, coinciding with a 22% drop in ETH's value since the last report.

Financial Management and Transparency

The Ethereum Foundation, which oversees the development of the Ethereum blockchain, has faced increasing calls from the community for greater transparency regarding its financial activities. The previous financial report was published in April 2022.

• Of the total treasury, about $788.7 million (81.3%) is in cryptocurrencies, with nearly all (99.45%) of that amount in ether (ETH). The remaining $181.5 million consists of non-crypto investments and assets.

• The foundation emphasizes its commitment to holding most of its treasury in ETH, reflecting its belief in Ethereum's long-term potential. The foundation aims to fund essential public goods within the Ethereum ecosystem while maintaining a conservative treasury management strategy to ensure resources are available during prolonged market downturns.

Spending and Future Projections

Since the last financial snapshot, the price of ETH has decreased from around $3,300 to approximately $2,600, according to CoinMarketCap.

• The foundation reported expenditures of $105.4 million in 2022 and $134.9 million in 2023.

• These figures align with earlier statements by foundation researcher Justin Drake, who indicated that the foundation spends about $100 million annually and maintains around $650 million in its main wallet, providing a runway of roughly ten years.

New Conflict of Interest Policy

In an effort to enhance governance, the foundation has introduced a new conflict of interest policy. This policy mandates that researchers and developers disclose any external work or investment interests.

• Any outside work that pays over $25,000 annually or investment opportunities will undergo review by a discussion group.

• Employees are prohibited from accepting outside work that involves payment in illiquid assets or unknown market value tokens, particularly in relation to advisory roles prior to project launches.

This policy follows the recent resignation of two prominent Ethereum researchers, Justin Drake and Dankrad Feist, from their advisory roles at EigenLayer due to potential conflicts of interest related to token payouts from the platform.

The Ethereum Foundation's financial report highlights significant changes in its treasury and spending, alongside new policies aimed at ensuring transparency and ethical conduct within the organization.