The Ethereum Foundation has introduced a revamped treasury policy aimed at strengthening financial sustainability while continuing to support the network’s long-term growth and development. The announcement, made on June 4, 2025, highlights the foundation’s commitment to prudent fiscal management and ecosystem resilience amid an increasingly dynamic crypto landscape.
Under the new policy, the Ethereum Foundation will adopt a disciplined asset-liability management strategy that emphasizes financial stability, liquidity, and strategic allocation. The policy outlines clear frameworks for managing token sales, fiat reserves, and on-chain investments, including staking and decentralized finance (DeFi) deployments. This move represents a shift from the foundation’s historically passive approach—largely centered on holding ETH—to a more active treasury management structure.
A major feature of the policy includes capping annual operational expenses at 15% of the foundation’s total treasury, with reserves maintained to cover at least 2.5 years of expenses. This financial cushion is designed to shield the organization during what is expected to be a pivotal period for Ethereum in 2025–26, especially as the ecosystem gears up for significant network upgrades.
Commenting on the announcement, Hsiao-Wei Wang, Co-Executive Director of the Ethereum Foundation, said the changes reflect the foundation’s enduring mission and its evolving responsibility to the Ethereum community.
“The EF is here to stay for a long time and needs a robust long-term treasury management policy. It outlines our approach to macroeconomics, the management of crypto- and fiat-denominated assets, and reflects our commitment to transparency,” she said.
The treasury overhaul aligns with broader shifts occurring within the Ethereum ecosystem. Most notably, Vitalik Buterin recently reaffirmed Ethereum’s mission to scale Layer 1 by 10x over the next year. The upgrade will focus on boosting throughput and scalability while preserving the network’s decentralization ethos, ensuring that Layer 2 solutions benefit from more efficient and secure infrastructure.
In parallel, internal organizational changes—such as layoffs in operational teams and the rebranding of the Protocol Research & Development (PR&D) division—signal a wider strategic reset. The foundation appears to be re-aligning its resources to match the technical and economic demands of the next chapter in Ethereum’s evolution.
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