The Ethereum Foundation sells Ether. We know the reason!

Ethereum co-founder Vitalik Buterin confirmed that the foundation that manages the project sells ethers and thus finances necessary projects.

Ethereum Foundation sells ETH

The Ethereum Foundation is a non-profit organization that supports the second largest blockchain. Recently, we learned that he was selling ETH, which concerned investors and community members who began to wonder why the entity was selling Ether and not staking it, generating passive income for itself.

Now, Ethereum co-founder Vitalik Buterin has responded to all these concerns.

Why do we sell? It’s simple! It’s about development!

It all started with a social media post on October 25, in which Buterin shared a roadmap for Ethereum development. One user replied to the post, asking the developer to stop dumping ether on the market.

Buterin surprised: he replied that he personally had not only not sold a single ETH unit over the last 30 days, but on the contrary: he had even purchased additional cryptocurrency during this time. This question was prompted by another community member who wanted to know the Ethereum Foundation’s position on the matter. The programmer confirmed that this organization sells ETH – he gave several reasons why he behaves this way. This is about paying researchers and developers who work on network changes (e.g. EIP-1559). This is a necessary investment because the changes shorten, for example, the transaction execution time and the costs of using the network.

To sum up, the Ethereum Foundation is not fleeing the market by selling its ETH, but investing coins to develop its project.

According to the Scopescan platform, the foundation sold 4,066 ETH for just over $11 million. However, according to Scopescan, this is a mistake. The company calculated that at the current staking rate of return of 3.1%, the organization could earn up to $20.08 million per year if it staked the 271,000 ETH it claims to have.

However, Buterin claims that staking is out of the question for a reason – he and his colleagues wanted to maintain Ethereum’s decentralized ethics by allowing other entities to stake ETH. As a result, no single organization has undue influence over the blockchain.