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Ethereum Foundation Announces Overhauled Treasury Strategy Amid Scaling Push

The Ethereum Foundation (EF) has overhauled its treasury strategy. The non-profit foundation that oversees the development and management of the Ethereum blockchain aims to strengthen the long-term sustainability and growth of the Ethereum ecosystem.

The EF plans to prioritise the refinement of its asset-liability management policy by considering factors like risk, duration, and liquidity, it said in a statement on June 4. It also plans to support strongly decentralised, and open source applications. The foundation said that it will try to reallocate funds between protocols frequently, depending on market conditions, diversification, or new yield opportunities.

The EF plans to focus on analysing its Annual Opex and its Years of Opex Buffer. While Annual Opex is expressed as percentage of current total treasury, the latter represents the number of years of operating runway held in the reserves. Sharing its current targets, the EF said it plans to allocate 15 percent of its treasury on its yearly operations and keep 2.5 years worth of expenses in its reserves to ensure financial security.