Vitalik Buterin Defends Ethereum Foundation’s Sales Amid Community Criticism | CPT PPP Coverage
Cryptopolytech (CPT) Public Press Pass (PPP)
News of the Day COVERAGE
200000048 – World Newser
•| #World |•| #Online |•| #Media |•| #Outlet |
View more Headlines & Breaking News here, as covered by cryptopolytech.com
Vitalik Buterin Defends Ethereum Foundation’s Sales Amid Community Criticism appeared on beincrypto.com by @https://x.com/hardeyjumoh.
Ethereum co-founder Vitalik Buterin recently addressed why the Ethereum Foundation, the non-profit supporting the blockchain network, opts to sell its ETH holdings rather than stake them.
His comments follow increasing community criticism, calling on the Foundation to manage its resources more responsibly.
Why the Ethereum Foundation Doesn’t Stake Its ETH
In an October 27 post on X, Buterin outlined the rationale behind the Foundation’s decision to periodically sell ETH. He noted that staking could lead the Foundation to take an “official stance” on certain network upgrades, particularly during contentious hard forks — something it wants to avoid.
However, Buterin revealed that the Foundation is exploring other methods to engage with staking. These options include issuing grants in staked ETH, which would allow grant recipients to stake the ETH, control withdrawal timelines, and keep the rewards. Another potential approach is delegating staking responsibilities to multiple organizations to stake on the Foundation’s behalf.
“One interesting idea around this that is being considered is giving some grants in the form of ‘you can stake our ETH, you choose how as long as it’s ethical, and keep the upside,” Buterin stated.
Staking is essential to Ethereum’s proof-of-stake (PoS) mechanism, where users lock up ETH to validate transactions and earn rewards. Many in the crypto community argue that by staking its ETH, the Ethereum Foundation could fund its operations through these rewards, potentially reducing the need to sell off assets.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Recently, blockchain analytics platform ScopeScan reported that the Foundation had sold 4,066 ETH, valued at $11.24 million, on-chain via the decentralized exchange CoWSwap this year. ScopeScan also calculated that, with the current annual staking return of 3.1%, the Foundation’s 271,000 ETH holdings — worth approximately $673 million — could generate 8.4 million ETH (or about $20.8 million) per year if staked.
During this conversation, Buterin encouraged the crypto community to recognize the Ethereum Foundation’s broader contributions to the digital asset.
According to him, proceeds from ETH sales fund critical payments to the developers and researchers responsible for major network upgrades. These include Ethereum’s transition to Proof-of-Stake, consistent low transaction fees, and rapid processing speeds averaging around 30 seconds.
Read more: How to Invest in Ethereum ETFs?
Buterin also highlighted the Foundation’s support for innovations like zero-knowledge technologies for enhanced privacy and account abstraction for improved security. Additionally, the Foundation sponsors local Ethereum events worldwide, strengthening the community and network security.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
FEATURED ‘News of the Day’, as reported by public domain newswires.
View ALL Headlines & Breaking News here.
Source Information (if available)
This article originally appeared on beincrypto.com by @https://x.com/hardeyjumoh – sharing via newswires in the public domain, repeatedly. News articles have become eerily similar to manufacturer descriptions.
We will happily entertain any content removal requests, simply reach out to us. In the interim, please perform due diligence and place any content you deem “privileged” behind a subscription and/or paywall.
CPT (CryptoPolyTech) PPP (Public Press Pass) Coverage features stories and headlines you may not otherwise see due to the manipulation of mass media.
First to share? If share image does not populate, please close the share box & re-open or reload page to load the image, Thanks!