- Ethereum is implementing a new treasury policy to reduce its annual spending from 15% to 5% by 2030 while adopting a rule-based ETH sale system to ensure financial stability.
- Ethereum is also embracing “Defipunk” principles to prioritize privacy-focused DeFi projects, reinforcing its commitment to core cypherpunk values.
Revolutionizing Ethereum’s Treasury Strategy
In a bold move to future-proof Ethereum’s financial stewardship, the Ethereum Foundation has unveiled a new treasury policy aimed at cutting spending and supporting privacy-focused DeFi protocols. Announced just weeks after the Pectra Upgrade, this shift is designed to align the foundation’s financial strategy with Ethereum’s founding principles—decentralization, privacy, and sustainability.
The new roadmap targets a sharp reduction in annual expenses—from 15% of its treasury to just 5% by 2030. Co-executive director Hsiao-Wei Wang explained that the foundation intends to set a “predictable glide path” for its spending, allowing it to remain a long-term steward while narrowing its operational scope. This ensures stability, especially in a volatile crypto market.
Ethereum Sales: Now Rule-Based and Predictable
To normalize the foundation’s approach to ETH sales, the policy introduces a rule-based system. Ethereum will now only be converted into fiat when cash reserves dip below a 2.5-year expense buffer—approximately 37.5% of the treasury. This quarterly conversion strategy ensures fiscal discipline while minimizing the potential market impact of large ETH sales.
In practice, this means that the foundation will liquidate just enough ETH each quarter to cover its operational needs, using exchanges or on-chain swaps.
Embracing the “Defipunk” Ethos
Perhaps the most philosophically significant part of the update is the adoption of “Defipunk” values—a nod to the 1993 Cypherpunk Manifesto by Eric Hughes. This ethos emphasizes privacy as a social necessity, not a luxury.
Going forward, the Ethereum Foundation will apply these values when screening DeFi protocols for treasury deployment. Wang emphasized that early institutional backing is crucial in tipping the scales toward widespread privacy adoption in DeFi.
This strategic alignment with the Cypherpunk movement sends a strong message: Ethereum isn’t just evolving technically—it’s recommitting to the ideological roots that inspired its creation.
A Leaner, More Principled Future for Ethereum
The Ethereum Foundation’s new policy is more than just a financial overhaul; it’s a philosophical recalibration. With leaner operations, smarter treasury management, and a firm stand on privacy,ETH is gearing up for a future that stays true to its decentralized DNA—while positioning itself as a resilient force in a rapidly maturing crypto landscape.
