The Ethereum Foundation (EF) has announced plans to engage more actively in the decentralized finance (DeFi) ecosystem by seeding a newly created multisig wallet with 50,000 ETH (valued at over $167 million). This initiative follows recent statements from Ethereum co-founder Vitalik Buterin, who hinted at organizational changes aimed at addressing transparency and community concerns.
The EF revealed that the wallet, a Safe 3-of-5 multisig, will be funded over the coming days due to required signing approvals. The move marks a significant step for the organization, which has faced criticism for underutilizing its sizable $1 billion ETH treasury. Observers have long called for the EF to stake or deploy a portion of its holdings within the Ethereum ecosystem instead of creating perceived “sell pressure” by converting ETH to stablecoins for operational expenses.
The decision comes amid scrutiny over EF leadership and treasury management, with some in the community advocating for structural changes, including new leadership to align with the Foundation’s technical mission. The announcement also follows public concerns about Ethereum’s market performance and growing competition from chains like Solana.
While EF’s transparency has been questioned, supporters argue that increasing its participation in DeFi could foster broader community trust. Historically, the Foundation has used blockchain solutions for grants, token sales, and event tickets but has avoided direct ecosystem involvement, drawing criticism for its passive approach.
This proactive step is seen as a move toward addressing concerns while signaling EF’s commitment to the ecosystem. Many community members view this as an opportunity for the Foundation to strengthen its alignment with Ethereum’s core principles and DeFi innovation.