The Foundation backing the Ethereum blockchain has laid out a new treasury policy to ensure it allocates resources efficiently while supporting its DeFi ecosystem. The Ethereum Foundation is adopting a more structured and transparent treasury policy that ties operational costs and cash needs to its Ether reserves and sales to strengthen its financial position as it anticipates a pivotal 18 months ahead. Its annual operating cost — measured as a percentage of the EF’s treasury — and the number of years of runway will be reassessed regularly, factoring in market dynamics and community input to ensure the foundation’s short-term operations remain aligned with its long-term strategy, one of the foundation’s directors said on June 4. Hsiao-Wei Wang said the Ethereum Foundation currently only has 2.5 years before it runs out of cash, setting the stage for a crucial 18 months as it seeks to deploy resources more deliberately and provide more ecosystem support: Read more
Aave founder Stani Kulechov says the Ethereum Foundation is now both supplying and borrowing from Aave, completing what he calls “the full DeFi circle.” The Ethereum Foundation (EF) has borrowed $2 million in GHO, a decentralized stablecoin developed by Aave, in a move signaling deeper engagement with decentralized finance (DeFi) strategies. In a May 29 X post, Aave founder Stani Kulechov said the foundation borrowed $2 million in GHO tokens. “The EF is not only supplying ETH to Aave, but also borrowing from Aave,” Kulechov wrote, describing the development as “the full DeFi circle.” GHO is a decentralized, overcollateralized stablecoin native to the Aave Protocol. Unlike centralized stablecoins, GHO is governed by Aave’s decentralized autonomous organization (DAO), which oversees interest rates, collateral requirements and facilitator selection. Read more
The “Trillion Dollar Security Initiative” seeks to address legacy systems' issues and support Ethereum developers. The Ethereum Foundation has launched a security initiative aimed at supporting the broader adoption of onchain technologies, according to a May 14 announcement. The effort is part of an ongoing push to strengthen Ethereum's role in programmable digital assets. Fredrik Svantes, a protocol security research lead, and Josh Stark from the Ethereum Foundation management team will be the initial co-chairs of the initiative. Three contributors to the Ethereum ecosystem — samczsun, Medhi Zerouali, and Zach Obront — will help guide the project. Called the Trillion Dollar Security Initiative, the effort seeks to analyze, improve, and communicate to Ethereum developers areas where security can be improved, including user experience, wallet security, smart contract security and infrastructure. Read more