GET 10% OFF ON YOUR FIRST ORDER. FOR A LIMITED TIME ONLY. Use code: WELCOME on checkout

Vitalik Buterin Clarifies Why the Ethereum Foundation Sells ETH

The Ethereum Foundation, a non-profit that supports the second-largest blockchain, has been scrutinized lately, with community members questioning why it sells rather than stakes its ether (ETH) holdings.

Now, blockchain co-founder Vitalik Buterin has responded, providing detailed insights into why the organization chose to sell.

Commitment to Ethereum Development

It all started with an October 25 social media post in which Buterin shared the roadmap for universal light client verification on Ethereum. A user responded by asking the programmer to stop dumping, referring to Buterin’s recently reported sales of small portions of his Ethereum holdings.

The 30-year-old replied soon after, telling the user he had not sold a single ETH token in the last month and that his holdings had actually grown in that time. It elicited a question from another community member, who wanted to know about the Ethereum Foundation’s position on the same.

Buterin gave several reasons why the organization regularly liquidated its ETH stash, including paying researchers and developers responsible for advancements such as EIP-1559. This proposal has reduced transaction times and network costs.

He added that the funds generated from the token sales also went into supporting zero-knowledge technology for privacy, account abstraction for user security, and several events promoting Ethereum globally. He said these efforts have helped the blockchain’s security and stability, with no downtime recorded since 2016.

Maintaining Neutrality Over Market Influence

According to the blockchain analytics platform Scopescan, the foundation has sold 4,066 ETH, with a market value just above $11 million. Scopescan calculated that with the current 3.1% staking return rate, the institution could rake in as much as $20.08 million per year if it staked the 271,000 ETH it reportedly owns.

However, Buterin explained that one of the main reasons the organization doesn’t stake its ETH is to avoid any “official choice” in the event of a contentious hard fork.

“We don’t want to be in the situation of being forced to make an ‘official choice’ if there’s a contentious hard fork.”

He argued that they wanted to maintain Ethereum’s decentralized ethos by letting other entities stake on behalf of the network. This would ensure that no single foundation has an outsized influence on the blockchain.

For this reason, the non-profit’s preference remains funding development and operations directly, which Buterin asserted aligns better with Ethereum’s long-term goals.

The post Vitalik Buterin Clarifies Why the Ethereum Foundation Sells ETH appeared first on CryptoPotato.

Latest Press

default post thumbnail
News
4 hours ago
Dogwifhat (WIF) Shines With 15% Rally In The Past Week — Is $2.8 The Next Stop?
The emergence of Donald Trump as the president-elect of the United States has been one of the bigges...
READ MORE
default post thumbnail
News
4 hours ago
Crypto Analyst Predicts Notcoin Price To Surge 76% — Here’s How
The Notcoin price has been in red-hot form in the past day, and a popular crypto analyst on the X pl...
READ MORE
default post thumbnail
News
4 hours ago
Bitcoin Stock To Flow Model Reveals $500,000 Price Target
According to data from CoinMarketCap, Bitcoin (BTC) has gained by 0.66% in the past 24 hours with it...
READ MORE
post-thumbnail
News
4 hours ago
Will Shiba Inu Price Jump Over 300%? This Analyst Thinks So
Experts are confident that Shiba Inu could potentially undergo a massive price surge on the back of ...
READ MORE
default post thumbnail
News
4 hours ago
Bitcoin Climbs to $79,600 All-Time High, Fuels Broader Crypto Market Rally
Bitcoin soared to a historic high of nearly $80,000 on Sunday, fueled by renewed optimism within the...
READ MORE
default post thumbnail
News
4 hours ago
Bitcoin Stock-to-Flow Model Back on Track, Predicts $500K Per BTC: PlanB
After surging by more than 15% within a week, as well as breaking its March all-time high and charti...
READ MORE
post-thumbnail
News
4 hours ago
Double-Digit Price Surges From These Altcoins as Bitcoin (BTC) Eyes $80K (Weekend Watch)
It feels like a bull cycle once again as bitcoin’s price continues to chart new all-time highs alm...
READ MORE
post-thumbnail
News
4 hours ago
Dogecoin (DOGE) Rallies 12% to 3-Year High Amid ‘Face-Melting’ Price Predictions
The largest meme coin by market cap has continued its rally, which was solidified by Donald Trump’...
READ MORE
default post thumbnail
News
4 hours ago
This Is What Happened to the Bitcoin, Ethereum ETFs During US Election Week: Recap
In perhaps one of the most intriguing and important weeks for the US, local investors showed uncerta...
READ MORE
post-thumbnail
News
4 hours ago
Cardano (ADA) Soars 30% Daily as Founder Charles Hoskinson Makes Big Announcement
Charles Hoskinson, the founder of IOG, the entity behind Cardano, has returned from his recent absen...
READ MORE

Publish an article now

Unlock the power of media for instant visibility to the target audience, major SEO boost, greater website traffic and conversion rates.

click here to get started