The Ethereum Foundation (EF) Report, 2024 Edition

Learn more about EF, our recent work, Ethereum's ecosystem of funders, new organizations and policies.

The Ethereum Foundation (EF) has released its annual financial report for 2024, showcasing substantial holdings and a commitment to transparency and long-term sustainability.

Key Highlights:

EF Holdings: As of October 31, 2024, the EF treasury holds approximately $970.2 million, including $788.7 million in crypto assets and $181.5 million allocated to non-crypto investments and assets. Of the EF’s crypto holdings, nearly 99.45% is in Ethereum (ETH), amounting to 0.26% of the total circulating supply of ETH.

Conservative Treasury Management: In the report, the EF highlights its conservative approach to treasury management, which aims to weather market volatility and ensure the availability of resources during extended market downturns. “We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective,” the report states.

To sustain this approach, the EF “periodically” sells portions of its ETH holdings, building up fiat reserves during bullish market conditions to finance spending needs during bearish phases.

Conflict Of Interest Rules For Staff Members Tightened: The Ethereum Foundation is also introducing enhanced measures to address potential conflicts of interest among its team members. According to the updated policy, EF staff members, or “EFers,” may engage in external work but must disclose their involvement and seek approval from their team leads.

For engagements with a total value exceeding $25,000 annually, a review by an internal discussion group is mandated. The policy specifically prohibits EF staff from accepting compensation in illiquid assets with uncertain market value, such as advisory token packages for pre-launch projects, unless a rare exception is granted.

Ecosystem Funders, New Organizations, and Policies: The report highlights the foundation’s primary mission to fund and support public goods for the Ethereum network. Expenditures in 2023 included $47.4 million dedicated to “new institutions” aimed at boosting the ecosystem, a significant increase from $28.6 million in 2022.

Moreover, the EF invested $34.7 million in Layer 1 research and development, up from $32.1 million in the previous year.

“EF’s long-term thinking keeps us focused on supporting a sustainable and open ecosystem,” said Aya Miyaguchi, the executive director of the Ethereum Foundation. “We’re more committed than ever to planting seeds that may only mature years down the line, ensuring Ethereum’s resilience and collaborative growth.”