Author: Brayden Lindrea, CoinTelegraph; Compiled by: Five Baht, Golden Finance

The Ethereum Foundation stated that it will allocate 50,000 Ethereum worth approximately US$165 million to support the decentralization of Ethereum financial ecosystem.

Ethereum co-founder Vitalik Buterin wrote to X on January 20, stating that the non-profit foundation will make organizational changes to more actively support application builders and provide more transparency to the community.

The Ethereum Foundation’s Hsiao-Wei Wang said in an X post on January 20 that the funds will be held in a 3-of-5 multi-signature wallet on Safe, which is already lending Test transactions were executed on protocol Aave.

However, Wang noted that setting up the wallet can take several days.

Returns from the Ethereum network’s DeFi ecosystem can expand the foundation’s funds, which have fallen 56% from 617,000 Ethereum in January 2020 to 269,000, Arkham Intelligence data shows Ethereum, worth approximately $894 million.

The committed 50,000 Ethereum represents 18.5% of the Ethereum Foundation’s total holdings.

Infinix founder Kain Warwick has been one of the foundation’s outspoken critics, accusing it of a lack of interest in DeFi — while others have Dissatisfied with the selling pressure on Ethereum to pay wages and host events.

Prior to Wang’s announcement, Ethereum core developer Eric Conner said the foundation’s staking rewards could cover most, if not all, of its internal budget while alleviating some of the concerns that have upset the community. Selling pressure.

Some in the Ethereum community blame the foundation’s lack of engagement and leadership for Ethereum’s poor price performance relative to Bitcoin and Solana over the past few months—pointing out those networks’ backers and regulators agencies are in close contact.

Buterin stressed, however, that the nonprofit does not plan to implement an "ideological" shift or begin lobbying regulators in an effort to remain credibly neutral.

Buterin received support from CryptoQuant founder and CEO Ki Young Ju, praising him and the foundation for prioritizing "creating value over making money" at a time when celebrities and the incoming president are passing Meme coin launches make money.