- EF adjusts ETH sales based on reserve needs, aims to cut yearly costs to 5% by 2030.
- EF will support privacy-based DeFi with trusted tools and strong safety checks.
- Quarterly reports will track Ethereum’s use and fund changes for full project clarity.
The Ethereum Foundation has released a detailed treasury management policy for 2025, aiming to strengthen Ethereum’s ecosystem. The strategy strikes a balance between ETH sales, DeFi involvement, and fiat reserves, ensuring sustainability and transparency.
Smarter ETH Allocation and Reserve Strategy
According to its 2025 policy, the Ethereum Foundation plans to maintain a treasury buffer that can cover approximately 2.5 years of operational costs. Rather than allocating a fixed percentage annually, the EF dynamically adjusts ETH-to-fiat conversions to ensure sufficient reserves. EF currently allocates 15% of the total treasury to operations annually, with this amount subject to adjustment as needed.
Also, anything above this mark will not undergo adjustments unless the demand in the market shifts once again. The goal set for 2030 is to reduce operating costs to 5%, as is often done in managing endowments. Every three months, the report will calculate the required funds, assess the ecosystem’s condition, and track market trends.
Consequently, EF may adjust ETH holdings based on its buffer ratio and continue measuring ETH sales through both on-chain and off-chain methods. The organization aims to maintain sufficient liquidity while providing stable funding to support the Ethereum ecosystem.
Greater Focus on DeFi and Crypto-Native Investments
In line with its goals, EF will increase exposure to DeFi protocols while ensuring risk control and capital preservation. The released tokens include solo staking and supplying wETH to established lending protocols. All protocols will be evaluated for contract security, liquidity risks, and broader systemic threats.
With the maturity of DeFi infrastructure, the foundation will acquire real-world asset tokens into its reserve strategy. The foundation will only cater to proven and hardened, immutable, permissionless platforms, undivided in their support for Ethereum. These would include those that build upon the philosophy of privacy, decentralization, and open-source development.
Additionally, EF plans to support “Defipunk” principles, a framework that focuses largely on security, open-source tools, and privacy.
Related: Joe Lubin Confirms Wealth Fund Talks on Ethereum Shift
Transparency and Internal Privacy Practices
To ensure accountability, EF will issue quarterly performance reports to the board, which will include detailed annual summaries. These reports will cover asset positions, ecosystem activity, and major events, enhancing visibility across stakeholders.
Featured in reports, EF will attempt to embed the Defipunk values internally through the use of open-source, privacy-preserving tools and advocate for their adoption within its operations. Staff should develop skills in secureware to avoid risks and promote financial self-sovereignty in the first place.
