The Ethereum Foundation transferred 35,000 ETH in the past days, valued at nearly $97 million.
But then, this large transaction drew serious criticism from some in the crypto community, questioning the foundation’s financial transparency.
Halls of power
On August 23, the Ethereum Foundation moved 35,000 ETH, worth $96.9 million, to a Kraken exchange address.
The transaction quickly gained attention on the platform X when an account, Lookonchain highlighted it.
This led to some users voicing legit concerns about the foundation’s transparency, with one commenter demanding clearer financial disclosures and questioning the timing of such a huge transfer.
The Ethereum Foundation’s executive director, Aya Miyaguchi responded, explaining that this was a routine part of the foundation’s treasury management.
She told that the foundation has an annual budget of around $100 million, primarily allocated for grants and salaries. Some recipients require payment in fiat currency, not in ETH.
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Despite Miyaguchi’s clarification, not everyone was satisfied. Crypto attorney Gabriel Shapiro, the founder of Metalex Labs also expressed frustration with the foundation’s approach.
He criticized the lack of a clear strategy to boost the value of ETH or the whole Ethereum network and ecosystem, suggesting that the foundation’s financial decisions might be hurting the growth of the crypto industry.
Shapiro highlighted the tension between the foundation’s wealth and its responsibility to generate value for the holders, warning that this disconnect could discourage investment in Ethereum.
Ethereum Foundation, the weak link?
Marc Zeller, founder of the Aave-Chan Initiative also criticized the foundation’s spending.
He questioned the allocation of its $100 million annual budget, noting that many critical teams like for example Geth, receive relatively low compensation, but their work is pretty essential.
Zeller suggested that after the completion of upcoming Ethereum upgrades, it might be time to reconsider the role and funding of the Ethereum Foundation in the first place.
His comments reflect growing dissatisfaction among community members who feel the foundation isn’t using its resources effectively to support the network’s long-term success.
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