Ethereum Foundation converts 1,000 ETH into Stablecoins to finance research and donations


By Angel di Matteo @Shadowargel

The entity announced that it will exchange 1,000 Eth, equivalent to USD $ 4.5 million, by stablcoins through the platform DEFI COWSWAPwith the aim of maintaining liquid funds for research projects, donations and subsidies.

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  • The organization used the function TWAP of Cowswap To execute the exchange.
  • The measure follows another pre -10,000 conversion Eth In September.
  • Users on social networks criticized the sales strategy of Eth.

The Ethereum Foundation He reported this Friday that he will convey a conversion of 1,000 Eth, Valued at approximately USD $ 4.5 million, towards Stablecoins. The movement will be executed through the function TWAP (Time-weighted average price) of the decentralized platform Cowswap, in order to soften market volatility during operation.

The organization explained in its publication in the social network X that seeks to guarantee stable resources to finance “Continuous work in research and development, subsidies and donations, in addition to highlighting the power of decentralized finances (defi).”

This announcement adds to a treasury management strategy that the Foundation had already applied in September, when it communicated the sale of 10,000 Eth, valued at that time at USD $ 43.6 million, in centralized exchanges. In both cases, the entity framed the movements as part of the routine provision of funds for ecosystem support activities.

Context of financial decisions

In recent months, the Ethereum Foundation Pausó or reduced some of his subsidy programs with the purpose of reducing his expense rhythm. The conversion of their reservations in Stablcoins is aligned with that objective of optimizing the use of resources and maintaining financial stability.

The Foundation argues that the measure responds to the need for immediate liquidity to continue financing development projects Ethereum. However, the decision was not exempt from criticism. In X, several users pointed out that it would be more convenient to explore other options, such as resorting to platform loans DEFI native using Eth as collateral, or perform extraburstile operations (OTC) With treasury of digital assets.

The reactions reflect a broader debate within the crypto community on how the funds of entities representing ecosystems should be administered Blockchain. For some, recurring sales of Eth They could be interpreted as sale pressure in the market. Other argue that the Foundation must prioritize operational sustainability and financial stability before the accumulation of volatile assets.

This dilemma is not new: in September, after the conversion of 10,000 Eth, Users had already questioned the strategy, suggesting that the entity should take advantage of the tools of DEFI Before selling your reservations in the digital currency.

Treasury policy

In your announcement, the Ethereum Foundation He recalled that his treasury management policy, defined in June 2023, plans to maintain and periodically refine an asset administration scheme and a strategic subsidy distribution plan. The document emphasizes that the organization seeks to balance risk, duration and liquidity of the funds, without departing from the central principles of Ethereum.

Under that line, partial sales of Eth They are understood as part of a strategy designed to ensure continuous financing and long -term stability in projects linked to ecosystem growth.


Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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