
Ethereum Foundation Will Allocate 50,000 Ether to Support DeFi Apps
According to a post by Ethereum co-founder Vitalik Buterin on Jan. 20, the Ethereum Foundation has announced that it will be dedicating 50,000 Ether, equivalent to about $165 million, to support the decentralized finance (DeFi) ecosystem on the Ethereum blockchain.
This move is part of the foundation’s efforts to reorganize and better support the application builders in the community, with a focus on increasing transparency. The funds will be stored in a multisig wallet on the Safe platform and have already been tested on the Aave lending protocol, according to a post by the Ethereum Foundation’s Hsiao-Wei Wang on Jan. 20.
However, the wallet setup process may take a few days. The foundation hopes that investing in the DeFi ecosystem will not only benefit the community but also help increase the size of its treasury.
Currently, the foundation’s treasury has decreased by 56% in the past year, from 617,000 Ether to 269,000 Ether, according to data from Arkham Intelligence. This allocation of 50,000 Ether represents 18.5% of the foundation’s overall holdings.