Community Trust ScoreVerified
Ethereum Foundation has been made fun of for holding some of its treasury in Fiat currency. Twitter critics have been stating that Ethereum Foundation does not have faith in ETH as a true store of value. Ethereum continues to be volatile and therefore having fiat in reserve is practical to settle bills.
Ethereum Foundation is registered a Swiss non-profit. It was formed in 2014. The Ethereum Foundation managed the original ETH token distribution event. And, it also serves as an official hub for Ethereum ecosystem development.
The foundation has 3 million in Fiat. Reportedly, the 3 million in fiat is a lot and when it is diversified to other asset types. It would help the Ethereum Foundation if the price of ETH takes a major hit.
The Ethereum Foundation has provided a breakdown of the EF treasury, which details how the treasury has been used to induce ecosystem growth over the past year.
The Ethereum Foundation reports that it has spent $48 million in the past year with help with the mission of growing the Ethereum Ecosystem.
The report points to how “Approximately $20 million of this total was in the form of external spending, which includes grants, delegated domain allocations, third party funding, bounties, and sponsorships, and the remaining $28 million was used to fund teams and projects within the EF community.”
To provide for public goods projects, Ethereum Foundation partnered with third-party organizations like Gitcoin. In the contex of the Ethereum Ecosystem, “public goods” refers to the infrastructure which will benefit the broader Ethereum ecosystem.
Organizations like Gitcoin provide grants to public goods considering the community vote. They method of “quadratic funding” ensures that the largest projects don’t run away with all the funding.
Meanwhile, in terms of progression towards the Merge, Ethereum developers have been running shadow forks on Ethereum testnets. They ran the first shadow fork on Ethereum’s mainnet about 2 weeks ago.
The mainnet shadow fork is the holy grail as it will simulate how the network will respond under realistic and complicated conditions. Noteworthy, the past two mainnet forks have been successful; however, node operators bumped on to issues which need to be addressed before the actual Merge takes place.
Gone are the days when Ethereum used to be the next best thing to Bitcoin. There are several Ethereum Killers competing to take a part of the market share that Ethereum enjoys. Investors are now looking to diversify their portfolio with Bitcoin, Ethereum, other Altcoins and meme coins. It is not going to be the Ethereum only world – we need to wait to see how Merge creates a new perspective after kicking in.
