The Ethereum Foundation just swapped 1,000 ETH worth roughly $4.5 million, converting it into stablecoins to cover research costs, grants, and donations. They’re using CoWSwap’s TWAP feature to spread the sale out over time and avoid hammering the market with one big dump.
This appears different from their earlier plan to convert 10,000 ETH through centralized exchanges back in September. That was a much larger sale, so this seems like a separate transaction entirely. The foundation didn’t say which stablecoins they’re getting in return.
The move makes sense when you consider they’re trying to stabilize their budget against crypto’s wild price swings. Converting ETH into fiat-backed assets gives them predictable funding instead of watching their treasury bounce around with market volatility.
Right now the foundation burns through about 15% of its treasury annually, which only gives them around two and a half years of runway. They’re planning to gradually drop that spending rate down to just 5% over the next five years, basically copying how university endowments operate for long-term sustainability.
This comes while they’re dealing with internal changes too. They paused new grant applications to their Ecosystem Support Program because demand got overwhelming, brought on two new co-executive directors in April, and restructured their development teams over the summer.
Vitalik Buterin has been pushing the idea that low-risk DeFi applications could generate steady revenue for Ethereum similar to how Google Search prints money for Google, giving the ecosystem financial independence without compromising its values.
Conclusion
Ethereum Foundation sold 1,000 ETH for $4.5 million in stablecoins through CoWSwap to fund operations while protecting against crypto volatility and improving long-term financial stability.
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