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Ethereum Foundation (EF) recently transferred 35,000 ETH, or ~$95 million, to Kraken, sparking calls within the Ethereum community for more transparency from the organization.
What's the scoop?
- Aya Miyaguchi, Executive Director of the EF, sought to clarify on X that the transaction was part of the EF’s regular treasury management activities. The funds are earmarked for grants, salaries, and other expenses that require fiat currency.
- Miyaguchi noted EF’s budget is roughly $100 million annually, with much of it allocated to behind-the-scenes support for the Ethereum ecosystem, including legal protection, infrastructure, and research collaborations. Miyaguchi also noted that regulatory issues had delayed the transaction, preventing the EF from sharing their plans in advance.
- Community pushback largely focused on frustration around how the EF has remained far too reactionary in its external communications, with some noting that the group's recent scandals could have been avoided by more timely, transparent disclosures.
Bankless take:
While the EF’s $100 million budget covers essential and often unseen activities that support the Ethereum network, the community’s response underscores a growing demand for more regular financial disclosures. The EF operates with a philosophy of “subtraction,” focusing on coordination rather than taking the spotlight. However, as the network matures and the stakes grow higher, there’s a clear need for the EF to balance its discretion with the community’s expectations for transparency. More frequent and detailed financial reports would be a definite step in that direction.
It's a big issue that it takes people raising a fuss on Twitter to ever get ANY info out like this.
— eric.eth (@econoar) August 24, 2024
Seriously, how hard is it release a quarterly report with financials and basic updates? Expenses, expected upcoming sales, how/where the money is being spent, team size and…
