Quick Read of Ethereum Foundation Report: $970 Million Treasury, 99.45% Crypto Holdings in ETH
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Quick Read of Ethereum Foundation Report: $970 Million Treasury, 99.45% Crypto Holdings in ETH
The total value held in the treasuries of projects within the Ethereum ecosystem amounts to $22.2 billion.
Navigating Web3 tides with focused insightsCompiled & Edited by: Karen, Foresight News
Previously, the spending practices of the Ethereum Foundation (EF) sparked widespread concern within the community, with members consistently calling for greater transparency.
Today, the Ethereum Foundation has officially released a comprehensive report detailing its core values, expenditure breakdown, treasury status, and the overall state of the ecosystem.
Foresight News has summarized and compiled the key points below:
TL;DR
1. The Ethereum Foundation's three core values: Long-term thinking, Subtraction (self-restraint), and Value preservation;
2. In 2022, the Ethereum Foundation spent a total of $105.4 million, with the largest portion allocated to L1 research and development at 30.4% ($32.1 million), followed by new organizations or institutions (27.1%, $28.6 million);
3. In 2023, EF’s total spending increased to $134.9 million—nearly 28% more than in 2022—with funding for new organizations rising sharply to $47.4 million (35.2%), while L1 R&D accounted for 25.7%;
4. As of October 31, 2024, the Ethereum Foundation’s treasury totaled approximately $970.2 million, consisting of $788.7 million in cryptocurrency assets and $181.5 million in non-cryptocurrency investments and assets;
5. Among the EF’s cryptocurrency holdings, 99.45% are ETH, representing 0.26% of the total ETH supply as of October 31, 2024;
6. The combined treasury value across projects in the Ethereum ecosystem amounts to $22.2 billion. From 2022 to 2023, the Ethereum ecosystem deployed $497 million in funding to support various community initiatives.
The Ethereum Foundation’s Three Core Values
The Ethereum Foundation (EF) consists of multiple independent teams. EF believes that small, autonomous teams represent the most efficient organizational structure. New teams typically emerge organically from existing ones to address emerging needs within the ecosystem. These teams contribute across diverse areas of the Ethereum ecosystem: some focus on software development or exploring frontiers of the Ethereum roadmap; others support global developer and user communities; while additional teams work to promote awareness and education about Ethereum’s utility and potential worldwide.
The Ethereum Foundation’s three core values are: long-term thinking, subtraction (self-restraint), and value preservation.
Long-term thinking: The Foundation observes that the ecosystem sometimes focuses too heavily on short-term goals and cycles. EF aims to serve as a counterbalance—looking beyond market fluctuations and focusing on the long-term vision.
Subtraction (Self-Restraint): Avoiding the pursuit of power or prestige, EF measures success by the achievements of the broader Ethereum ecosystem, not by its own prominence.
p>Value Preservation: Ethereum is more than just technology—it is a community united by shared values.Ethereum Foundation Activities and Expenditures
Over the past two years, the Ethereum Foundation has actively nurtured and supported numerous new organizations driving progress in the Ethereum ecosystem, including Argot Collective (formed by 25 former EF team members focused on core infrastructure development), Geodework (building community and educational infrastructure), L2BEAT (providing analysis, research, and tools related to Ethereum L2 projects), Nomic Foundation (developing open-source engineering software), and 0xPARC (accelerating the development and deployment of programmable cryptography).
In 2022, the Ethereum Foundation spent a total of $105.4 million. The largest share went to L1 R&D at 30.4% ($32.1 million), followed by funding for new organizations (27.1%, $28.6 million), community development (18.5%), internal operations (Internal Ops—covering general overhead supporting all EF teams, 8.1%), developer platforms (7.9%), Applied ZK (7.2%), and L2 R&D (0.8%). Funding for new organizations included grants to entities such as Nomic Foundation, 0xPARC, and L2BEAT.
In 2023, EF’s total expenditures rose to $134.9 million—a nearly 28% increase compared to 2022. Support for new organizations saw the largest growth, reaching $47.4 million (35.2%)—now the top category—while L1 R&D decreased slightly in proportion to 25.7%, though still marginally higher in absolute spending than in 2022. Other major categories included community development (12.5%), Applied ZK (11.0%), internal operations (7.7%), developer platforms (6.5%), and L2 R&D (1.4%).
Ethereum Foundation Treasury
As of October 31, 2024, the Ethereum Foundation’s treasury stood at approximately $970.2 million, comprising $788.7 million in cryptocurrency assets and $181.5 million in non-cryptocurrency investments and other assets.
Within its crypto holdings, the vast majority—99.45%—are ETH. This ETH amount represents 0.26% of the total ETH supply as of October 31, 2024.
The Ethereum Foundation stated: “We hold the majority of our treasury in ETH because we believe in Ethereum’s long-term potential. The purpose of the EF treasury is to fund critical public goods for the Ethereum ecosystem over many years to come. To achieve this, we must follow prudent treasury management policies to ensure sufficient resources even through prolonged market downturns. This requires us to regularly sell ETH to maintain adequate reserves in fiat currency, and to systematically increase our fiat savings during bull markets to fund operations during bear markets.”
Ethereum Ecosystem Treasuries
The chart below illustrates the total value held in project treasuries across the Ethereum ecosystem, amounting to $22.2 billion. This includes both liquid funds available for use and funds that have not yet been fully released. Most project treasuries are primarily composed of the project’s native tokens. These treasury funds play a vital role in supporting the development and sustainability of the Ethereum ecosystem.
From 2022 to 2023, the Ethereum ecosystem collectively deployed $497 million in funding to support community-driven initiatives.
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