By Key Points
- Ethereum Foundationโs ETH sales fund blockchain development, Buterin says
- Critics claim sales affect ETH price; Buterin defends expenditure strategy
- Staking Foundation ETH could cause governance issues, Buterin explains
- Ethereum price remains under pressure despite recent developments
Ethereum Foundation Criticism has intensified, with critics questioning the organizationโs recent sales of ETH. In response, Ethereum co-founder Vitalik Buterin defended these sales, emphasizing that they are essential to Ethereum’s development and security.
Addressing concerns directly, Buterin clarified that the Ethereum Foundation strategically uses funds to support the ongoing growth and maintenance of the Ethereum network, countering criticism that the sales hurt ETHโs market performance.
I want to know why the Ethereum Foundation doesn’t stake all of its ETH holdings and only use the revenue to cover costs, just like the Nobel Prize Foundation? Why do you insist on selling ETH regularly without considering market sentiment and everyone’s voices? You have alwaysโฆ
โ ้ๅJason ๐ก (@jason_chen998) October 26, 2024
Addressing the Ethereum Foundation Criticism on ETH Sales
The Ethereum Foundation criticism revolves around its ETH sales strategy, which some argue creates downward price pressure. However, Buterin clarified that the Foundationโs primary goal is not price speculation but ensuring Ethereumโs long-term viability.
He explained that funds from ETH sales are directed toward compensating developers and researchers, organizing global events, and supporting the infrastructure that underpins Ethereumโs decentralized applications and security.
These funds, according to Buterin, are crucial for the foundation to maintain the Ethereum blockchainโs operational efficiency and allow for future upgrades.
Addressing critics, he noted,โThe Ethereum Foundation pays researchers and developers who improve Ethereumโs performance, reduce fees, and ensure network security.โ This approach aims to reassure users and investors that each ETH sale is an investment into Ethereumโs ecosystem.
Buterinโs response comes as Ethereum Foundation criticism mounts, especially as ETH prices have been under pressure. ETH currently trades at around $2,502, and some attribute its recent volatility partly to the Foundationโs sales, although Buterin insists that such sales fund key advancements.
Why Staking Isnโt a Solution Amid Ethereum Foundation Criticism
Some critics proposed that the Foundation could stake its ETH to generate yield rather than sell, but Buterin clarified that staking could introduce governance issues.
As a large staker, the Foundation would be required to participate in governance votes, which could force it to take public stances on protocol updates or hard forks.
To address Ethereum Foundation criticism without sacrificing neutrality, Buterin mentioned exploring options like lending ETH for staking.
Additionally, he pointed out that Ethereumโs shift toward decentralization has allowed multiple organizations to support the ecosystem, reducing reliance on the Foundation and distributing responsibilities.
In closing, Buterin emphasized that the Foundation remains committed to Ethereumโs development, seeing its ETH sales as investments in the blockchainโs future.
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