- Ethereum Foundation caps annual spending at 15% of treasury with planned reduction to 5%.
- Foundation outlines solo staking and wETH lending as core deployment strategies.
- Consensys-linked whale purchases $320 million ETH from Galaxy Digital, stakes $120M.
The Ethereum Foundation has published its treasury management policy and has established a 2.5-year operating expense buffer and capped annual spending at 15% of total treasury assets. The policy includes a planned reduction to a 5% long-term spending target over the next five years, with structured quarterly and annual reporting to the board and management.
The treasury strategy comes as major institutional activity continues around Ethereum, highlighted by a Consensys-linked whale wallet purchasing approximately $320 million worth of ETH from Galaxy Digital. According to Arkham data, the acquired ETH was transferred to a newly created address, from which $120 million was staked through Liquid Collective.
The foundation’s policy outlines current strategies, including solo staking and wrapped ETH (wETH) supplied to established lending protocols. These core deployments are intended as long-term positions subject to continual re-evaluation based on market conditions and protocol developments.
Ethereum Foundation Expands DeFi Plans
The EF plans to expand beyond basic staking strategies as the DeFi ecosystem matures. The Foundation may borrow stablecoins to seek higher yields on-chain and also maintain risk management protocols for any new deployments.
Management and advisors will evaluate candidate protocols across multiple risk factors. This includes contract security, liquidity risk, and de-peg risk before approving allocations. This vetting process aims to protect treasury assets while generating returns through carefully selected DeFi opportunities.
Tiered Treasury Model Combines Yield Farming and Tokenized RWAs
The Foundation plans to integrate select on-chain allocations into its fiat reserves over time. This includes carefully vetted yield farming strategies and tokenized real-world assets (RWAs). This gradual approach allows the EF to benefit from DeFi innovation while maintaining conservative risk management.
The policy categorizes fiat-denominated assets into three categories, designed to match different operational needs and time horizons. Immediate-liquidity assets include cash and highly liquid instruments covering real-time operational requirements.
Liability-matched reserves consist of fixed-term deposits, investment-grade bonds, and other low-risk instruments aligned with longer-term obligations. This tier provides stability while generating modest returns on funds not needed for immediate operations.
Tokenized Real World Assets (RWAs) form the third category, governed by the same strategic objectives and risk guidelines as those applied to native crypto assets. This inclusion allows the Foundation to benefit from traditional asset classes through blockchain-native instruments.
Related: Bitcoin vs. Ethereum One Wins Developers, the Other Investor Cash
The Consensys whale purchase contributes to the growing institutional activity surrounding Ethereum. The $320 million acquisition from Galaxy Digital indicates continued institutional demand for ETH exposure, while the immediate $120 million staking deployment suggests long-term holding intentions.
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