Ethereum Foundation adjusts its spending strategy to ensure future platform growth

According to CoinMarketCap, the Ethereum Foundation (EF) is tightening its spending strategy and ramping up support for the decentralized financial system (DeFi). The website's experts say the platform is entering what it calls a “critical 18-month period.” During this time, it will modernize its treasury policy and establish monitoring of expenditure management. Such changes should help the EF prepare for future challenges.

Under this new strategy, EF will tie its operating costs and runway to its ETH holdings, with regular reassessments. EF’s Hsiao-Wei Wang said the current treasury gives the organization about 2.5 years of runway.

In particular, EF is considering selling ETH once a quarter to cover its fiat currency needs. However, such sales will be less aggressive due to inflows from investments in DeFi protocols.

With the upcoming changes, EF will use its treasury assets in audited DeFi protocols, directly interacting with the Ethereum ecosystem. The organization has already started providing ETH as collateral and raised $2 million through Aave, according to CoinMarketCap.