Ethereum co-founder Vitalik Buterin addressed criticism regarding periodic sales of cryptocurrency from the Ethereum Foundation’s (EF) reserves, which allegedly put pressure on the price.

and about eth foundation?
— NΞO (@NeoCallss) October 25, 2024

The programmer explained that the foundation funds the work of researchers and developers who support the network’s operation, development, and security.

“The real criticism should be about why EF is selling ETH in a way that could impact the market. Why not set limit orders to avoid pressure on investors?” noted data analyst Bianca Weisroy.

Buterin responded that sales are carried out through limit orders, and sending 35,000 ETH to the Kraken exchange does not imply an immediate sell-off.

Puffer Finance advisor Jason Chen proposed a model where EF’s costs are covered through staking income from reserves, instead of regular asset sales.

I want to know why the Ethereum Foundation doesn't stake all of its ETH holdings and only use the revenue to cover costs, just like the Nobel Prize Foundation? Why do you insist on selling ETH regularly without considering market sentiment and everyone's voices? You have always…
— 陈剑Jason 🐡 (@jason_chen998) October 26, 2024

“Why don’t you consider market sentiment and the community’s opinion? If Ethereum’s POS is so reliable, why doesn’t EF stake its ETH?” Chen asked.

Buterin explained that this model was rejected because EF aims to remain neutral in case of a “controversial hard fork.” However, he added that the possibility of offering grants in cryptocurrency, which recipients could stake and earn income from, is being considered.

Buterin also proposed the “distribution of legitimacy and resources” among multiple entities that could authentically represent Ethereum.

Regarding his personal ETH sales, Buterin noted that his personal reserves of cryptocurrency have actually increased over the past month.

It is worth noting that, according to researcher Justin Drake, the current EF reserves are sufficient to cover the foundation’s expenses for approximately 10 years.