The Ethereum Foundation said it would swap 1,000 ETH (approximately $4.5 million) for stablecoins to fund research and development, grants, and donations.
The Ethereum Foundation said Friday it will swap 1,000 ETH (approximately $4.5 million) for stablecoins to fund growth.
Using CoWSwap’s TWAP feature, the organization said converting the ether into stablecoins will help it fuel “ongoing work to fund R&D, grants and donations, and to highlight the power of DeFi,” according to a post to social media platform X.
Last month, the Ethereum Foundation made a similar announcement, saying it would convert 10,000 ether (worth $43.6 million at the time) to stablecoins on centralized exchanges, framed as routine funding for research, grants, and donations.
The announcement came after the foundation paused, or slowed, several grant programs to reduce its burn rate, The Block previously reported. As with last month’s 10,000-ETH announcement, many users on X criticized the foundation’s plan on Friday.
Some urged the Ethereum Foundation to either borrow against its ETH using DeFi-native lending platforms or engage in over-the-counter deals with digital asset treasuries.
On Friday, the Ethereum Foundation pointed to its treasury policy from last June, outlining how it prefers to manage its funds.
“To achieve its objectives, EF will maintain and periodically refine an asset-liability management policy and a high-level grant allocation strategy,” the blog post said. “EF will manage its assets, considering risk, duration, and liquidity, while remaining aligned with Ethereum’s core principles.”
