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Ethereum Foundation currently holds around $163 million worth of Ethereum




Ethereum Foundation currently holds around $163 million worth of Ethereum
Source: Unsplash

Ethereum Foundation, one of the main powerhouses behind Ethereum, recently published a blog post on their allocation of funds for the next 12 months and the approximate funds held by it. The funds allocated for the next year will contribute to projects working on Ethereum 1.0, Ethereum 2.0, and the overall development of the ecosystem.

The non-profit organization stated,

“As the ecosystem has matured, the Ethereum Foundation has refined its focus. “Doing what is best for Ethereum” doesn’t mean trying to do everything – it means focusing on where we can add the most value, and leaving space for others to add value in the areas that they will be the most effective.”

The organization also stated that its role was to be an allocator, an advocate, and a voice in the ecosystem. Further, the Foundation also revealed that it has control of around 0.6 percent of all Ether [around $163 million worth of ETH, at press time], along with cash reserves that would be spent on the development of Ethereum. Additionally, the Foundation stated that they would be working on the development of fundraising platforms such as Gitcoin and MolochDAO.

The blog post read,

“These resources are intended to decrease over time, as they are invested in critical work across the ecosystem. These are significant amounts of capital but they are not infinite. It is our responsibility to ensure that every last dollar and wei is spent effectively.”

For Ethereum 2.0, the “client teams supported by the Foundation” includes Sigma Prime, Substrate Shasper, Nimbus, and Prysm. Out of these teams, Nimbus, Prysm and Sigma Prime have already launched their Lighthouse Testnets for 2.0.

For Ethereum 1.x, the Foundation said,

“Efforts we’ve funded include Alexey Akhunov’s research into stateless clients and state fees, and Andrew Ashikhmin’s research into sync protocol improvements. Work continues on essential projects like Geth and Solidity as well, and regular updates from all supported teams are on the way.”

The Foundation further revealed the amount of funds it has allocated for Ethereum’s development. The organization has allocated a sum of $30 million on “key projects across ecosystem,” which includes projects working on the current state of Ethereum, projects working on the future of Ethereum, and spreading awareness/developer growth.

For projects working on the future of Ethereum like ETH 2.0 and Zero-knowledge, a total of $19 million has been allocated for the next 12 months. For projects working on the current state of Ethereum, ETH 1.0, the Foundation has allocated $8 million for the next year. For developer growth and awareness, the Foundation allocated $3 million.

The blog post read,

“Allocating across such a large and vibrant ecosystem is a substantial optimization challenge. We are constantly re-evaluating and optimizing our decisions, and new opportunities for leverage appear every day.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.