Ethereum Foundation Outlines Comprehensive Treasury Policy
Iris Coleman Jun 04, 2025 18:32
The Ethereum Foundation has unveiled its new treasury policy, focusing on asset management, transparency, and maintaining Ethereum's core principles. The policy aims to support long-term sustainability and ecosystem stewardship.
The Ethereum Foundation (EF) has introduced a detailed treasury policy aimed at strengthening Ethereum's ecosystem while ensuring long-term sustainability and adherence to core principles, according to the Ethereum blog. This policy outlines strategies for asset management, transparency, and supporting the broader Ethereum community.
Macro Policy
EF's macro policy focuses on maintaining an asset-liability management strategy and a grant allocation approach that aligns with Ethereum's principles. The policy emphasizes asset management in terms of risk, duration, and liquidity. It introduces key variables: Annual Operating Expenses (Opex) as a percentage of the total treasury and the number of years of Opex held in reserve. Currently, the targets are set at 15% of treasury for annual Opex and a 2.5-year buffer.
Crypto Assets Policy
The crypto assets policy aims to earn reasonable returns on treasury assets while adhering to Ethereum's principles. It prioritizes safety, security, and supporting decentralized finance (DeFi) projects that align with Ethereum's goals. The policy includes Ether sales and deployments, focusing on conservative strategies like solo staking and engagement with established lending protocols.
Fiat-denominated Assets Policy
The policy details the allocation of fiat holdings into immediate-liquidity assets, liability-matched reserves, and tokenized real-world assets (RWAs). These allocations are designed to support operational needs and long-term obligations.
Transparency and Reporting
Transparency is a core component of the policy, with the EF Co-Executive Directors accountable for treasury management. Regular internal reporting, including quarterly and annual reports, ensures accountability and informed oversight. These reports cover performance metrics, notable events, and ecosystem engagement.
Cypherpunk Goals
EF is committed to supporting projects that align with cypherpunk principles, emphasizing privacy, self-sovereignty, and decentralization. The policy highlights the importance of privacy in DeFi and outlines criteria for evaluating projects based on permissionless access, self-custody, and open-source development.
Overall, the Ethereum Foundation's comprehensive treasury policy underscores its commitment to being a long-term steward of the Ethereum ecosystem. By balancing financial sustainability with core principles, EF aims to foster a robust and secure environment for Ethereum's continued growth and innovation.
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