TechFlow News, October 27 — Ethereum co-founder Vitalik Buterin responded on social media to community criticism regarding the Ethereum Foundation's (EF) decision not to stake its ETH holdings. In reply to questions about "why the Ethereum Foundation does not stake its ETH reserves and instead relies solely on income to cover expenses," Vitalik explained that the main reason EF avoids staking is to prevent being forced into making an "official choice" during contentious hard forks.
Vitalik revealed that EF is considering a new grant model: allowing grantees to stake the foundation’s ETH and earn yield, effectively offering subsidies with the principle of "you can stake our ETH, you can choose how to stake it, as long as it's ethical, and we retain upside potential." He also noted that decentralizing legitimacy and resources across the Ethereum ecosystem is another part of the solution. There are now multiple organizations widely seen as credible representatives within the ecosystem—a significant improvement compared to two years ago.
Regarding criticism over the Foundation's periodic sales of ETH, Vitalik emphasized that EF expenditures primarily support researchers and developers, stating: "The Foundation is paying researchers and developers for work that ensures:
1. Ethereum doesn't waste 5 million ETH per year on proof-of-work;
2. User fees are now low;
3. Transactions settle within 30 seconds, rather than 1–30 minutes (EIP-1559)."
