{"id":1013,"date":"2024-08-26T12:30:13","date_gmt":"2024-08-26T12:30:13","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=1013"},"modified":"2024-08-26T12:30:13","modified_gmt":"2024-08-26T12:30:13","slug":"crypto-founder-calls-for-dissolution-of-ethereum-foundation-following-price-suppression-rumors","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=1013","title":{"rendered":"Crypto Founder Calls For Dissolution Of Ethereum Foundation Following Price Suppression Rumors"},"content":{"rendered":"

Marc Zeller<\/a>, founder of the Aave Chan Initiative (ACI), has called for the dissolution of the Ethereum Foundation<\/a>. This came following a recent transaction suggesting that the Foundation was again looking to sell the ETH top.\u00a0<\/p>\n

Ethereum Foundation Should Be Dissolved After Purge And Verge Upgrades<\/h2>\n

In an X (formerly Twitter) post<\/a>, Zeller remarked that the Ethereum Foundation should be defunded and dissolved once the Purge and Verge upgrades<\/a> are delivered. The crypto founder suggested that the Foundation\u2019s budget was too outrageous, as he questioned what the foundation needed an annual budget of $100 million for. He added that the Geth team receives a \u201cmeagre\u201d pay despite the \u201ccritical work\u201d they perform in the Ethereum ecosystem<\/a>.<\/p>\n

Zeller\u2019s comments were in direct response to an X post<\/a> by the Ethereum Foundation\u2019s Executive Director, Aya Miyagotchi<\/a>, in which she revealed that the Foundation\u2019s recent deposit of 35,000 ETH ($94.07 million) into Kraken was part of their treasury management activities. She stated that the Ethereum Foundation has an annual budget of $100 million and that most of this money is for grants and salaries.\u00a0<\/p>\n

She suggested that the Ethereum Foundation has always had to sell a significant amount of their Ethereum holdings because some of the recipients of the grants and salaries can only accept fiat. Meanwhile, she also revealed why they were just carrying out such treasury activity, noting that they had been unable to do so before due to regulatory complications<\/a>.\u00a0<\/p>\n

The regulatory complication she was referring to is the US Securities and Exchange Commission\u2019s (SEC)<\/a> investigation into whether ETH was a security, although this investigation was eventually closed.\u00a0<\/p>\n

As expected, the Ethereum Foundation\u2019s deposit of $94 million worth of ETH into Kraken sparked fears of a massive sell-off, which could significantly impact ETH\u2019s price<\/a>. However, Miyagotchi assured the community that they weren\u2019t looking to sell all those tokens at once. She said, \u201cThere will be planned and gradual sales from here on.\u201d<\/p>\n

The Foundation\u2019s Budget Is Not Sustainable<\/h2>\n

Crypto researcher Ignas<\/a> noted<\/a> that the Ethereum Foundation will spend all its ETH holdings in eight years if it continues to work with an annual budget of $100 million. Data<\/a> from the on-chain analytics platform Arkham Intelligence<\/a> shows that the Foundation holds 273,776 ETH ($748.88 million). Ignas added that if the Foundation wants to fund its operations for much longer, it will need ETH\u2019s price to rise or start staking its ETH tokens<\/a> to earn yields.\u00a0<\/p>\n

The crypto researcher also revealed that most of the Ethereum Foundation\u2019s expenditures<\/a> are on grants. According to their 2021 financial report, which seems to be their most updated report, only 10% of the Foundation\u2019s expenditures went to salaries and maintaining the Foundation. In line with this, Zeller called<\/a> for the Ethereum Foundation to cut \u201call\u201d the grants from their budget.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

Marc Zeller, founder of the Aave Chan Initiative (ACI), has called for the dissolution of the Ethereum Foundation. This came following a recent transaction suggesting that the Foundation was again looking to sell the ETH top.\u00a0 Ethereum Foundation Should Be Dissolved After Purge And Verge Upgrades In an X (formerly Twitter) post, Zeller remarked that […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1013","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/1013"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1013"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/1013\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}