Marc Zeller, founding father of the Aave Chan Initiative (ACI), has called for the dissolution of the Ethereum Foundation. This got here following a recent transaction suggesting that the Foundation was again trying to sell the ETH top. 

Ethereum Foundation Should Be Dissolved After Purge And Verge Upgrades

In an X (formerly Twitter) post, Zeller remarked that the Ethereum Foundation ought to be defunded and dissolved once the Purge and Verge upgrades are delivered. The crypto founder suggested that the Foundation’s budget was too outrageous, as he questioned what the inspiration needed an annual budget of $100 million for. He added that the Geth team receives a “meagre” pay despite the “critical work” they perform within the Ethereum ecosystem.

Zeller’s comments were in direct response to an X post by the Ethereum Foundation’s Executive Director, Aya Miyagotchi, through which she revealed that the Foundation’s recent deposit of 35,000 ETH ($94.07 million) into Kraken was a part of their treasury management activities. She stated that the Ethereum Foundation has an annual budget of $100 million and that the majority of this money is for grants and salaries. 

She suggested that the Ethereum Foundation has at all times needed to sell a big amount of their Ethereum holdings because a number of the recipients of the grants and salaries can only accept fiat. Meanwhile, she also revealed why they were just carrying out such treasury activity, noting that they’d been unable to achieve this before as a result of regulatory complications. 

The regulatory complication she was referring to is the US Securities and Exchange Commission’s (SEC) investigation into whether ETH was a security, although this investigation was eventually closed. 

As expected, the Ethereum Foundation’s deposit of $94 million price of ETH into Kraken sparked fears of an enormous sell-off, which could significantly impact ETH’s price. Nonetheless, Miyagotchi assured the community that they weren’t trying to sell all those tokens without delay. She said, “There will likely be planned and gradual sales from here on.”

The Foundation’s Budget Is Not Sustainable

Crypto researcher Ignas noted that the Ethereum Foundation will spend all its ETH holdings in eight years if it continues to work with an annual budget of $100 million. Data from the on-chain analytics platform Arkham Intelligence shows that the Foundation holds 273,776 ETH ($748.88 million). Ignas added that if the Foundation desires to fund its operations for for much longer, it’ll need ETH’s price to rise or start staking its ETH tokens to earn yields. 

The crypto researcher also revealed that the majority of the Ethereum Foundation’s expenditures are on grants. In response to their 2021 financial report, which appears to be their most updated report, only 10% of the Foundation’s expenditures went to salaries and maintaining the Foundation. According to this, Zeller called for the Ethereum Foundation to chop “all” the grants from their budget. 

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