The Ethereum Foundation has announced a major investment initiative in Zero-Knowledge Virtual Machines (zkVMs). According to Ethereum researcher Justin Drake, the Foundation is directing tens of millions of dollars toward three key zkVM projects.
The initiative includes zkRISC-V formal verification, Poseidon cryptanalysis, and an L2beat platform specifically designed for zkVMs. This investment aims to improve Ethereum’s scalability while maintaining compatibility with existing smart contracts.
The verified-zkevm.org project focuses on formal verification of zkRISC-V. It also works to ensure the mathematical correctness of zero-knowledge proofs. Meanwhile, the Poseidon-initiative.info concentrates on cryptanalysis. This strengthens the security foundations of zkVM technology. The upcoming ethproofs.org platform will serve as a resource for tracking and analyzing zkVM developments.
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In their recent report, the company stated that as of October 31, 2024, they maintain a treasury valued at $970.2 million. This reserve is strategically divided between $788.7 million in cryptocurrency holdings and $181.5 million in non-crypto investments and assets. Notably, 99.45% of the Foundation’s crypto holdings are in ETH. This represents 0.26% of the total Ethereum supply.
The Foundation’s treasury management reflects a balanced approach between long-term confidence in Ethereum’s potential and prudent financial planning. The foundation’s financial strategy includes periodic ETH sales to maintain sufficient fiat reserves. This sale, particularly during bull markets, helps to sustain development activities during potential market downturns. This approach ensures the Foundation can continue funding crucial ecosystem developments regardless of market conditions.
This substantial investment in zkVM technology, supported by a well-managed treasury, indicates the Ethereum Foundation’s strategic focus on advancing zero-knowledge proof technology. Coming to the price performance of Ethereum, ETH price was down by 1.4% in the last 24 hours. CoinGecko data showed that ETH was trading at $3,576 at press time. However, the coin has shown a modest gain of 34% in the last 30 days.
