Ethereum Foundation reforms treasury strategy amid broader organizational shift

The Ethereum Foundation has introduced a new treasury policy designed to ensure long-term sustainability while supporting the ecosystem’s continued growth.

According to a June 4, 2025 statement, the Ethereum Foundation is refining its treasury management framework. Central to the new policy is a disciplined asset-liability management approach that balances risk and liquidity to safeguard financial stability. It provides clear guidelines for token sales, fiat reserves, and strategic on-chain investments while prioritizing transparency and long-term sustainability.

While it has historically relied on holding ETH, the new strategy will aid the foundation in taking a more active approach to treasury management, including regular ETH sales to maintain a fiat reserve and expanding its use of staking and DeFi deployments. 

Additionally, the foundation will set its annual operating expenses at 15% of its total treasury, with enough reserves to cover at least 2.5 years of operations. The decision is driven by the anticipation that  2025–26 will be a critical period for the ecosystem, and aims to ensure stability during the period.

Commenting on the new policy, Co-Executive Director Hsiao-Wei Wang expressed that the new approach reflects the organization’s long-term mission.

“The EF is here to stay for a long time and needs a robust long-term treasury management policy,” she said. “It outlines our approach to macroeconomics, the management of crypto- and fiat-denominated assets, and reflects our commitment to transparency.”

The treasury policy overhaul comes amid a broader organizational shift within the Ethereum ecosystem, aimed at supporting its ambitious roadmap.

Ethereum eyes major network scaling

Co-founder Vitalik Buterin recently announced the mission to scale the Ethereum Layer 1 by approximately tenfold within the next year.  With a focus on enhancing sustainability, he emphasized that the upgrade will follow a steady and balanced approach, enhancing scalability while preserving decentralization.

The technical improvements are expected to strengthen the broader ecosystem, particularly by improving the performance and security of Layer 2 solutions, enabling them to operate more efficiently.

Recent internal changes including layoffs in core operational teams and a rebranding of the Protocol Research & Development (PR&D) division are also part of the latest shifts within the ecosystem, reflecting a broader strategic reset as the network forges ahead.