The Ethereum Foundation has announced a significant revision to its treasury management strategy aimed at bolstering long-term financial stability and supporting ongoing ecosystem development.
In a statement issued on June 4, 2025, the organization detailed a newly adopted macroeconomic and asset-liability framework designed to optimize risk management and liquidity. Moving beyond its historical practice of simply holding ETH, the Foundation now plans a more proactive approach, including systematic sales of Ethereum tokens to build and maintain fiat reserves, alongside increased engagement with staking and decentralized finance (DeFi).
Future annual operating budgets will be tightly structured, capped at 15% of the total treasury assets on hand, ensuring reserves remain robust enough to guarantee a minimum of two and a half years’ worth of operational expenses. This cautious financial planning comes in anticipation of pivotal moments expected during the 2025-2026 period.
Hsiao-Wei Wang, co-executive director of the Ethereum Foundation, underlined the new policy’s reflection of the Foundation’s core mission around sustainability and transparency. She emphasized the importance of establishing resilient long-term objectives, clearly defining how the organization will manage its holdings across cryptocurrency and fiat assets.
The strategic revision of the treasury comes as Ethereum pursues substantial network upgrades. Recently, Ethereum co-founder Vitalik Buterin outlined ambitious scaling goals targeting approximately a tenfold increase in Layer 1 network capacity within the next twelve months. Buterin accentuated that these enhancements will follow a measured pace to preserve decentralization while significantly boosting performance.
Ongoing internal restructuring efforts align closely with these technical ambitions. These include recent staffing reductions across core operational teams and the renaming and redefining of the Protocol Research & Development (PR&D) division. Together, these changes represent a strategic shift aiming to reinforce Ethereum’s position as it moves forward with a broad-based ecosystem evolution.
