That Ethereum Foundation published his first financial reportwhich provides insight into how the non-profit organization works.

The Ethereum Foundation holds about 0.3% of the total ETH supply

The report revealed that as of March 31, 2022, the foundation held $1.6 billion worth of financial assets. 80.5% of them are ETH0.7% other cryptocurrencies and 18.8% non-crypto assets and investments.

Interestingly, the Foundation’s ETH holdings currently account for almost 0.3% of the total Ether supply.

The report is part of the foundation’s effort to be more transparent while also involving the Ethereum community in its plans. Along with details of its finances, it also revealed how the nonprofit manages its portfolio to ensure it has enough funds to develop the ecosystem.

It is reading,

“EF follows a conservative treasury management policy that ensures we have sufficient resources to fund EF’s core objectives even in the event of a multi-year market downturn.”

The 28-page report also explained its policy of selling part of its ETH reserve to fund its non-crypto holdings.

Ethereum Foundation on the sale of its holdings and its issues

According to the foundation, this happens when ETH has peak prices to ensure sufficient funds in the core budget.

Past sales include 70,000 ETH during the 2017 bull market, 35,000 ETH just after the May 2021 peak, and 20,000 when it touched its current ATH of $4,878 on November 10th. The timing of all of these sales is quite remarkable.

The report also includes expenses incurred by the Foundation. It was revealed that the foundation spent approximately $48 million in 2021.

These funds were spent on several projects, including Level 1 and 2 research and development, community development, and zero-knowledge rollup applications. All of this indicates that the funds were spent to help Ethereum improve its scalability.

The largest spend was on Layer 1 R&D, with almost $22 million spent on it. Next, $10 million was spent on community development, while around $2 million was spent on Layer 2 R&D.

The Ethereum Foundation is the largest non-profit organization supporting the Ethereum ecosystem. The foundation is responsible for the amount expected migration the blockchain to a proof-of-stake-stake network.

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