The Ethereum Foundation’s financial report for April 2022 gives a clear picture of how many assets it possesses in its treasury. The financial report for any foundation is very important as it expresses transparency and accountability, as well as promotes trust. The Ethereum Foundation’s financial statement however tells us that the crypto-based organization has a reasonable share of non-crypto assets alongside crypto assets in its treasury.
This shows that while the foundation has about $1.6 billion stored up in its treasury, 0.7% ($11 million) are in other crypto assets, and 18.8% ($302 million) of these assets are not in any way related to crypto. According to the report, the foundation only recently increased its non-crypto assets. Be that as it may, the report states that the foundation’s recent expansion in non-crypto assets is more inclined towards precaution in case of unforeseen turn of events in the crypto industry.
Increasing non-crypto assets owned by the Ethereum Foundation has aroused the interest of the crypto world. A blockchain-based cryptocurrency, Ethereum has a worldwide ranking taking second place in the list of the largest cryptocurrencies. It can be hence surprising to find that the Ethereum Foundation treasury has assets beyond crypto.
It’s no news that the Ethereum Foundation takes charge of managing the Ethereum network’s funds as well as generating funds. Hence, it is understandable that they own a total of about 0.3% of the world’s Ether. For more clarification, this percentile amounts to about $1.3 billion; a majority of the Ethereum Foundation’s total assets.
Ethereum Foundation Financial Statement
The financial statement analysis totals about $48 million in expenditure in the year 2021. It is important to note that this analysis is exclusive to the currently ongoing CIP or Client Incentive Program. The CIP program would require rewarding shares worth $132 million (39,168 in ETH) to some node operators.
A simple breakdown of how the Ethereum Foundation spent funds in 2021;
|1||Layer-one research and development||$21.8 million|
|2||Community development||$9.7 million|
|3||Ethereum’s developer platform||$5.9 million|
|4||International operations||$5.1 million|
|5||Zero-knowledge research and development project||$3.6 million|
|6||Layer-two research and development||$1.9 million|
The financial report released not only accounts for their total holdings but also discloses how funds were managed in the preceding year 2021. The amount spent in comparison to the foundation’s available assets further proves that the Ethereum foundation’s finance is not in the least threatened. This detailed description of the foundation’s finances happens to be a first-time event and may be associated with the forthcoming PoS project.
Saddled with the responsibility of overseeing and managing funds for all of Ethereum’s projects, the foundation’s financial analysis is indeed crucial. There are however popular opinions that the non-crypto assets the Ethereum Foundation possesses are merely fiat reserves. Notwithstanding, the fact remains that the Ethereum Foundation has amassed and intentionally increased assets outside the confines of Ethereum and crypto in general.