Ethereum co-founder Vitalik Buterin has addressed community concerns regarding the Ethereum Foundationâs decision to sell rather than stake ETH.
The conversation began when a user tweeted, âJust stop dumping and weâll be alright, bro.â This prompted an immediate response from Ethereum co-founder Vitalik Buterin.
Vitalik Says He Hasnât Sold a Single ETH in Past Month
Buterin quickly clarified his personal position, stating, âI havenât sold a single ETH in the past month.â He also added that the amount of ETH he holds has actually gone up.
– Advertisement –
This led to further questioning about the Ethereum Foundationâs activities, with user NEO specifically asking about the foundationâs selling practices.
In response, Buterin defended the foundationâs approach by highlighting its crucial contributions, saying,
âThe ETH foundation is paying researchers and developers that are responsible for Ethereum not bleeding 5 million ETH/year to proof of work.â
The discussion deepened when a community member raised an interesting comparison with the Nobel Prize Foundation. The user questioned why the Ethereum Foundation doesnât stake all its ETH holdings and use only the revenue for operational costs.
The user specifically challenged the foundationâs regular selling practices. He also suggested that they disregard market sentiment and community voices while also questioning confidence in Ethereumâs Proof of Stake system.
Buterinâs response revealed complex considerations behind the Foundationâs strategy. The primary concern, he explained, is avoiding situations where the Foundation would be forced to make an âofficial choiceâ during contentious hard forks.
This strategic position aims to maintain neutrality and prevent any single entity from having too much influence over the networkâs direction.
To address these challenges, Buterin outlined two potential approaches:
First, a novel grant structure where recipients could stake the Foundationâs ETH and keep the upside. This is with the condition that staking decisions remain ethical. This approach would distribute staking decisions while maintaining the Foundationâs asset base.
Second, spreading legitimacy and resources across multiple organizations representing Ethereum, reducing the concentration of influence.
Buterin noted major progress in this direction over the past two years. He also suggested the ecosystem is becoming more decentralized.
63% Holders in Profit
According to data from IntoTheBlock, 63% of holders are currently making money at current ETH prices. Interestingly, 35% are in loss positions, and 3% are at neutral or break-even points.
These statistics provide important context for understanding the communityâs sensitivity to institutional selling practices. As per the latest data, the Ethereum price was trading at $2,460 at press time with no major movements in the last 24 hours.
The ETH price was also down close to 7% in the last seven days. Ethereum was hovering around the $2,700 level a week ago. However, the overall market conditions have brought down the price of ETH.