Ethereum co-founder Vitalik Buterin has addressed community concerns regarding the Ethereum Foundation’s decision to sell rather than stake ETH.
The conversation began when a user tweeted, “Just stop dumping and we’ll be alright, bro.” This prompted an immediate response from Ethereum co-founder Vitalik Buterin.
Vitalik Says He Hasn’t Sold a Single ETH in Past Month
Buterin quickly clarified his personal position, stating, “I haven’t sold a single ETH in the past month.” He also added that the amount of ETH he holds has actually gone up.
This led to further questioning about the Ethereum Foundation’s activities, with user NEO specifically asking about the foundation’s selling practices.
In response, Buterin defended the foundation’s approach by highlighting its crucial contributions, saying,
“The ETH foundation is paying researchers and developers that are responsible for Ethereum not bleeding 5 million ETH/year to proof of work.”
Community Member Asks Why Ethereum Foundation Doesn’t Stake
The discussion deepened when a community member raised an interesting comparison with the Nobel Prize Foundation. The user questioned why the Ethereum Foundation doesn’t stake all its ETH holdings and use only the revenue for operational costs.
The user specifically challenged the foundation’s regular selling practices. He also suggested that they disregard market sentiment and community voices while also questioning confidence in Ethereum’s Proof of Stake system.
Buterin’s response revealed complex considerations behind the Foundation’s strategy. The primary concern, he explained, is avoiding situations where the Foundation would be forced to make an “official choice” during contentious hard forks.
This strategic position aims to maintain neutrality and prevent any single entity from having too much influence over the network’s direction.
To address these challenges, Buterin outlined two potential approaches:
First, a novel grant structure where recipients could stake the Foundation’s ETH and keep the upside. This is with the condition that staking decisions remain ethical. This approach would distribute staking decisions while maintaining the Foundation’s asset base.
Second, spreading legitimacy and resources across multiple organizations representing Ethereum, reducing the concentration of influence.
Buterin noted major progress in this direction over the past two years. He also suggested the ecosystem is becoming more decentralized.
63% Holders in Profit
According to data from IntoTheBlock, 63% of holders are currently making money at current ETH prices. Interestingly, 35% are in loss positions, and 3% are at neutral or break-even points.
These statistics provide important context for understanding the community’s sensitivity to institutional selling practices. As per the latest data, the Ethereum price was trading at $2,460 at press time with no major movements in the last 24 hours.
The ETH price was also down close to 7% in the last seven days. Ethereum was hovering around the $2,700 level a week ago. However, the overall market conditions have brought down the price of ETH.
