In the 2021 financial report published by the Ethereum Foundation, some details such as the spending details for the “merge” stage under Ethereum 2.0, Ether sales and funds excluded from crypto assets were interpreted as interesting.
With the 28-page report presented by the Ethereum Foundation, a non-profit organization that supports the Ethereum network, the organization aims to inform Ethereum investors with transparency and reveal the vision of the Blockchain network.
In the financial report released, it is stated that the Ethereum Foundation has a total assets of $ 1.6 billion as of March 31, 2022. Most of the foundation's balance sheet is held as crypto assets, while a portion of $300 million is invested in non-crypto investment products. According to the report, the foundation, which owns 1.3 billion dollars worth of Ether, thus owns approximately 3% of the ETH amount in circulation.
Foundation Makes Disclosure Regarding Current Ethereum Position
It was stated that the Ethereum Foundation sold ETH to create a margin of safety for its main capital, and a non-crypto investment product was purchased with the funds obtained. The foundation has been subject to harsh criticism from time to time regarding its ETH sales. The criticisms were related to the not-for-profit Ethereum Foundation selling the crypto asset at a peak price. Because the foundation had drawn all the criticism above the arrows by selling Ethereum at the peak price in the 2017 bull season, May 2021 period and finally in November 2021. Despite the sales, the foundation remains the largest holding of Ethereum at the moment.
Another important detail in the report was the expenditures made to support Ethereum developers and various layer-2 solutions on the way to the consensus mechanism. Accordingly, the foundation stated that $48 million was spent on layer-2 solutions, zero-knowledge (ZK) research and development activities, and Ethereum mainnet development activities. In addition, it was announced that approximately $20 million was spent on grant payments made through third party financing and sponsorships within the scope of the ecosystem support program.