The Ethereum Foundation has unveiled a comprehensive Financial Policy aimed at reinforcing the sustainability and autonomy of the Ethereum ecosystem. This policy underscores the Foundation’s commitment to its foundational principle: enabling decentralized applications that operate without interruption, censorship, or external interference. The EF Treasury’s mandate is to ensure long-term operational viability while gradually reducing annual expenditures to a sustainable baseline of 5% over the next five years.
To maintain financial agility, the Foundation will dynamically reallocate resources across various protocols in response to market fluctuations and emerging revenue streams. Regular assessments of fiat-denominated assets will guide strategic decisions on Ethereum asset sales, typically executed via fiat off-ramps or on-chain exchanges. Current financial strategies emphasize independent staking and supporting mature lending protocols through wrapped Ether (wETH), with a cautious approach to core deployments focused on long-term asset retention. Additionally, the EF may leverage stablecoin borrowing to optimize on-chain yield generation, reinforcing its role as a prudent steward of Ethereum’s financial ecosystem.