Ethereum co-founder Vitalik Buterin has revealed that the Ethereum Foundation is considering staking its nearly $1 billion in ETH holdings. The announcement follows criticism from community members regarding the foundation’s limited participation in the Ethereum ecosystem. Critics have noted that the foundation primarily uses the blockchain to sell tokens, distribute grants, and facilitate event ticketing, leading to calls for it to engage more actively in the network.
Currently holding approximately 269,000 ETH, the foundation’s assets represent 0.26% of the total Ethereum supply. If staked, these holdings could generate around $26.2 million annually through platforms like Lido Finance, which offers a 2.95% yield. While this falls short of the $134.7 million the foundation spent in 2023, it would still mark a significant contribution to its operations.
Buterin addressed concerns about staking, noting that regulatory risks and the potential complications of network hard forks have deterred the foundation in the past. In a hard fork scenario, staked assets could face slashing penalties, forcing the foundation to take sides in contentious debates. However, Buterin explained that regulatory risks have diminished and that the foundation is exploring strategies to mitigate issues tied to hard forks, signaling a shift in its approach.
This discussion comes amid calls for broader changes within the Ethereum Foundation. Critics and community leaders have proposed measures to improve technical expertise, enhance communication with developers, and bring fresh talent into leadership roles. Notably, Ethereum co-founder Joseph Lubin suggested replacing current Executive Director Aya Miyaguchi with co-leaders Danny Ryan and Jerome de Tychey, citing their technical and leadership skills.
Buterin urged the community to focus on constructive engagement, emphasizing respect for existing leadership while building a positive future for Ethereum. As the foundation weighs staking and other reforms, its decisions could have significant implications for Ethereum’s development and its position within the blockchain ecosystem.