Ethereum Foundation (EF) contributor Josh Stark posted On Aug. 27, a detailed breakdown of social media expenditures by the organization for the last two years was published.
Stark released the information following growing speculation about the possibility that the foundation would sell large amounts of Ethereum. Rumors began to spread after an account linked with the foundation sent a large amount of Ethereum.
Stark hinted at the fact that the Foundation intends to release an expense report prior to this year’s Devcon which is scheduled for November 12.
The breakdown of funding
Stark provided two pie graphs that showed the Foundation’s allocation of funding for 2022 and 2023. The charts contain seven main areas: new institutions, L2 R&D, applied ZK, community development, developer platform, internal ops, and L1 R&D.
In both years, research and development (R&D) of Layer 1 improvements and new institutions were allocated the highest funding. Stark explained:
“Those graphs capture both internal and external spend. For example, ‘L1 R&D’ includes grants to external client teams, and it also includes internal EF researchers. In both years, internal spend was about 38% and external spend was about 62%.”
The internal spending is allocated to teams that work under the EF umbrella, including the Geth’s client, Solidity and Devcon teams, as well as the Ethereum Organisation’s team.
The foundation’s Ecosystem support Program (ESP) is responsible for external expenditures. The ESP granted $91.1million in grants between 2022-2023 to 895 distinct projects. data Their website contains a wealth of information.
Stark noted that ESP produces quarterly reports detailing the grant awards made to new projects. latest edition Description of the Grants provided for 2024 Q1.
Addressing the Issue “new institutions” Stark pointed out that one of foundation’s initiatives is this category. “help build up new organizations that can strengthen and support the Ethereum ecosystem in the long run.”
Stark referred to entities like open source The Decentralization Research Centre and the L2Beat data aggregator are among those who have partnered with Nomic Foundation. “other Ethereum-related and adjacent organs” as examples.
Ethereum’s co-founder Vitalik Buterin He shared Stark’s post, and reiterated that investments should be made in new institutions. He added You can also find out more about us here. “no World Economic Forum insect protein research” The foundation has a fund allocated for it.
$94 million transaction sparks debate
Stark revealed the breakdown of funding after a major 35,000 ETH transfer from EF’s wallet to crypto exchange Kraken On Aug. 23, caused man. The large amount — equivalent to $94 million at current prices — sparked debates in the crypto community over where the funds would be allocated.
Investors were concerned about a possible dump due to the size of the transaction. ETH’s price has dropped 22% in the last 30 days.
Angel investors such as DCInvestor suggested Buterin the next To reduce the risk of a stock market crash, large transactions could be broken down into smaller ones.
Buterin responded The suggestion is faced with the challenge of logistically coordinating the multiple transfers required by a wallet that has four signatures. Multi-transactions would require 48 different signatures to complete the transfer. He said:
“There are solutions of course (eg. multiple tiers of wallets), but for obvious reasons we don’t want to rush on something so security-sensitive.”
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Source: cryptoslate.com