{"id":440727,"date":"2024-08-27T22:30:18","date_gmt":"2024-08-27T21:30:18","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=440727"},"modified":"2024-08-27T22:25:58","modified_gmt":"2024-08-27T21:25:58","slug":"ethereum-foundation-reveals-spending-after-speculation-over-massive-transfer","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethereum-foundation-reveals-spending-after-speculation-over-massive-transfer\/","title":{"rendered":"Ethereum Foundation reveals spending after speculation over massive transfer"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cryptoslate.com\/companies\/ethereum-foundation\/\">Ethereum Foundation<\/a> <\/strong>(EF) contributor Josh Stark <a href=\"https:\/\/x.com\/0xstark\/status\/1828416179993522386\">posted <\/a>a breakdown of the organization's expenditures for the past two years on social media on Aug. 27.<\/p>\n<p>Stark shared the information after growing speculation that the foundation might plan to sell a large amount of Ethereum. The rumors sprang up after a wallet linked to the foundation made a large transfer.<\/p>\n<p>Stark also hinted that the foundation intends to publish an expenditure report before this year's Devcon, which is scheduled for Nov. 12.<\/p>\n<h2>Funding breakdown<\/h2>\n<p>Stark shared two pie charts showing the foundation's fund allocation for 2022 and 2023. The charts contain seven main areas: new institutions, L2 R&D, applied ZK, community development, developer platform, internal ops, and L1 R&D.<\/p>\n<p>In both years, research and development (R&D) of Layer 1 improvements and new institutions were allocated the highest funding. Stark explained:<\/p>\n<blockquote><p>\u201cThose graphs capture both internal and external spend. For example, \u2018L1 R&D\u2019 includes grants to external client teams, and it also includes internal EF researchers. In both years, internal spend was about 38% and external spend was about 62%.\u201d<\/p><\/blockquote>\n<p>Internal spending is related to the teams working under the EF umbrella in different sectors, such as client Geth's, Solidity, Devcon, and the Ethereum Organization's teams.<\/p>\n<p>Meanwhile, external spending is related to grants provided by the foundation's Ecosystem Support Program (ESP). Between 2022 and 2023, the ESP provided $91.1 million in grants to 895 different projects, according to <a href=\"https:\/\/esp.ethereum.foundation\/\">data<\/a> gathered from their website.<\/p>\n<p>Stark highlighted that ESP publishes quarterly reports on the grants conceded to new projects, with the <a href=\"https:\/\/t.co\/IZWnSzjD6f\">latest edition<\/a> describing the grants provided in 2024 Q1.<\/p>\n<p>Addressing the &#8220;new institutions&#8221; category, Stark highlighted that this is one of the foundation's efforts to &#8220;help build up new organizations that can strengthen and support the Ethereum ecosystem in the long run.&#8221;<\/p>\n<p>Stark mentioned entities such as open source software provider Nomic Foundation, the Decentralization Research Centre, data aggregator L2Beat, and \u201cother Ethereum-related and adjacent organs&#8221; as examples.<\/p>\n<p>Ethereum's co-founder <a href=\"https:\/\/cryptoslate.com\/people\/vitalik-buterin\/\">Vitalik Buterin<\/a> shared Stark's post and reiterated the importance of investments made into new institutions. He <a href=\"https:\/\/x.com\/VitalikButerin\/status\/1828418027034972507\">added<\/a> that &#8220;no World Economic Forum insect protein research&#8221; exists within the foundation's fund allocation.<\/p>\n<h2>$94 million transaction sparks debate<\/h2>\n<p>Stark shared the funding breakdown after a large <a href=\"https:\/\/platform.arkhamintelligence.com\/explorer\/tx\/0x196e4a47aae7bf14379e6866cb523c833b4421a17e94aa78f7026fbebcecc885\">35,000 ETH transfer<\/a> from EF's\u00a0wallet\u00a0to crypto exchange <a href=\"https:\/\/cryptoslate.com\/companies\/kraken\/\">Kraken<\/a> on Aug. 23 caused man. The large amount \u2014 equivalent to $94 million at current prices \u2014 sparked debates in the crypto community over where the funds would be allocated.<\/p>\n<p>Given the transaction's significant size, investors were worried about a potential dump that could add more pressure to its price since ETH has fallen 22% over the past 30 days.<\/p>\n<p>The angel investor known as DCInvestor <strong><a href=\"https:\/\/x.com\/iamDCinvestor\/status\/1828423017631723942\">suggested<\/a> <\/strong>to Buterin that the next large transactions should be divided into 12 smaller movements, which would help allay fears of a market dump.<\/p>\n<p>Buterin <strong><a href=\"https:\/\/x.com\/VitalikButerin\/status\/1828469217714204841\">responded<\/a><\/strong> that the suggestion faces the logistical challenge of coordinating multiple transfers from a multi-sig wallet that requires four confirmations. Multiple transactions would mean the transfer would have to be signed 48 separate times. He added:<\/p>\n<blockquote><p>\u201cThere are solutions of course (eg. multiple tiers of wallets), but for obvious reasons we don't want to rush on something so security-sensitive.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum Foundation (EF) contributor Josh Stark posted a breakdown of the organization&#8217;s expenditures for the past two years on social media on Aug. 27. Stark shared the information after growing speculation that the foundation might plan to sell a large amount of Ethereum. The rumors sprang up after a wallet linked to the foundation made [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":440729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,1,77968,38,37],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum Foundation reveals spending after speculation over massive transfer<\/title>\n<meta name=\"description\" content=\"The expenditures break down happened after a $94 million transaction from Ethereum Foundation sparked a debate in the crypto community.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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