Ethereum Foundation Unveils New Treasury Policy and R&D Restructuring
Jun 7
2 min read
The Ethereum Foundation (EF) has announced significant strategic shifts, including a comprehensive new treasury policy and a restructuring of its Research and Development (R&D) division. These changes aim to optimize resource allocation, enhance transparency, and sharpen the focus on critical protocol development, positioning Ethereum for pivotal growth in the coming years.
Ethereum Foundation Overhauls R&D for Sharper Focus
The Ethereum Foundation has rebranded its Protocol Research & Development (PR&D) team simply as "Protocol." This restructuring aims to streamline development efforts and address key technical challenges more effectively. The move involved some staff layoffs, though the exact number was not disclosed.
Key takeaways:
The "Protocol" team will concentrate on three strategic goals:Scaling Ethereum's base layer (L1).Expanding blobspace for rollups.Improving user experience (UX).
Longtime core developers Tim Beiko, Alex Stokes, and Barnabé Monnot have been assigned leadership roles within these focus areas.
Dankrad Feist, known for "Danksharding," will serve as a strategic advisor to all three tracks.
This restructuring follows recent leadership changes within the EF, including the appointment of Hsiao-Wei Wang and Tomasz Stańczak as co-executive directors, signaling a broader shift towards technical expertise and operational efficiency.
New Treasury Policy for Strategic Growth
In a move to enhance financial stability and transparency, the Ethereum Foundation has unveiled a new treasury policy. This policy aims to align short-term operations with long-term strategic goals, particularly in anticipation of 2025-2026 being a "pivotal" period for the Ethereum ecosystem.
Key aspects of the new treasury policy:
Transparency: The EF will publish quarterly and annual reports detailing asset holdings, investment performance, and significant developments.
Financial Position: As of October 31, 2024, the EF held approximately $970.2 million in total assets, with over 81% in ETH.
Strategic Spending: The policy emphasizes a more deliberate approach to depleting ETH reserves, with an intent to support the ecosystem during downturns or pivotal moments.
DeFi Engagement: The EF plans to engage more actively with permissionless DeFi protocols to earn returns on treasury assets, supporting "Defipunk principles." This includes supplying ETH to lending protocols and exploring real-world asset exposure.
Operational Cap: The policy includes an operational expenditure (OPEX) cap of 15% of the treasury's value, ensuring fiscal discipline.
This new policy addresses past community concerns regarding the EF's ETH sales and aims to foster greater trust and predictability in its financial management.
Sources
Ethereum Foundation restructures, rebrands Protocol team, Cointelegraph.
Ethereum Foundation Restructures R&D Division, Plans 'Rethink' on Design and Development, Decrypt.
Ethereum Foundation expects 2025-26 to be ‘pivotal’ for the ecosystem as it reforms its treasury management |The Block, The Block.
Ethereum Foundation Lays Off Some Staff Amid R&D Restructuring, CoinDesk.
Ethereum Foundation rolls out new treasury policy, Cointelegraph.