On June 4, 2025, the Ethereum Foundation released a comprehensive update to its Treasury management strategy, aiming to address the growing global influence of Ethereum and the increasingly strict institutional scrutiny, while achieving the maturity and structuring of fund allocation and balancing the commitment to funds and privacy. The following are some main contents of this plan:
Fund management framework
Asset-liability model: Introduce a formal asset-liability model, link operating expenditures to a fixed percentage of the foundation’s Treasury, and set a multi-year reserve period. Currently, the annual operating expenditure is set at 15% of the total assets, with an operational buffer period of 2.5 years, to determine how much Ethereum can be safely sold for fiat currency or stable assets.
Counter-cyclical pattern: The activities of the Treasury will follow the counter-cyclical pattern, providing more active support during market downturns and making moderate adjustments during bull markets.
Asset allocation strategy: Although Ethereum remains the cornerstone of the funding pool, the new guidelines allow for broader participation in on-chain opportunities, including staking, lending, tokenized real-world assets, and strictly reviewed decentralized finance (DeFi) protocols. This marks a shift from the foundation’s past passive funding stance to a more proactive management approach. Seek a balance between revenue generation and ideological and risk constraints.
Privacy commitment measures
Evaluation criteria: Through an internal framework named “Defi punk”, potential DeFi partners are evaluated from a series of criteria such as permissionless access, self-custody, open-source licensing, and transaction blocking and other technical privacy functions. For agreements that do not meet the standards, if credible progress can be demonstrated towards these ideal goals, they may still meet the requirements.
Internal requirements: The internal operations of the Ethereum Foundation will also follow these privacy standards. Staff responsible for the deployment of the fund pool need to use privacy protection tools and contribute to the open-source infrastructure to maintain higher ideological consistency.
In addition, the foundation will also enhance transparency by releasing quarterly and annual reports to better present the management of the fund pool to the community and stakeholders.
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