Ethereum's co-founder, Vitalik Buterin, recently spilled the beans on why the Ethereum Foundation prefers selling its ether (ETH) holdings over staking them. This non-profit powerhouse, backing the world's second-largest blockchain, has been under the magnifying glass as some curious cats in the community wonder why they're not cashing in on staking rewards.
Buterin jumped into the fray following a little back-and-forth on social media. It all kicked off on October 25, when he shared a roadmap for universal light client verification on Ethereum. A keen-eyed user pointed fingers at Buterin, urging him to stop “dumping” his ETH, referring to his recent modest sales. Buterin, the blockchain whiz kid at 30, quickly responded, clearing the air that he hadn't sold any ETH in the past month and, in fact, had bolstered his holdings.
This prompted another inquisitive mind to ask about the Ethereum Foundation's selling spree. Buterin laid out the game plan: the foundation sells ETH to bankroll essential projects, from paying brilliant minds behind innovations like EIP-1559—which has been a game-changer in slashing transaction times and costs—to supporting cutting-edge technologies like zero-knowledge solutions and user security improvements. Plus, they're all about spreading the Ethereum gospel worldwide.
Thanks to these well-crafted strategies, Ethereum has stayed rock-solid with zero downtime since 2016. Now, if you're wondering about the numbers, Scopescan, a blockchain analytics platform, reports that the foundation has sold 4,066 ETH, worth just over $11 million. If they staked their whopping 271,000 ETH stash, they could potentially rake in $20.08 million annually at the current 3.1% return rate.
But here's the kicker: Buterin explained that the foundation steers clear of staking to dodge any “official choice” dilemma if a contentious hard fork pops up. They don't want to swing the scales in any direction, keeping Ethereum's decentralized spirit alive by letting others stake on behalf of the network.
In Buterin's view, channeling funds directly into development and operations aligns better with Ethereum's long-term vision. So, while staking may sound tempting, the foundation is all about fueling innovation and keeping Ethereum's engine running smoothly.
