The Ethereum Foundation sparked an animated discussion in the cryptographic community after announcing its intention to sell around 10,000 ETH through centralized exchanges.
On September 2, the Ethereum Foundation published a transparency notice describing its plan to convert 10,000 ETH over several weeks.
The Foundation said that the product of these sales would support critical research and development initiatives, grant programs and charitable donations.
To minimize the impact of the market, the organization stressed that the conversions would occur through several smaller transactions rather than a single large order.
Earlier in the day, the blockchain analysis company, Lookonchain, confirmed that the Ethereum Foundation had already launched the sales process.
The company indicated that the Foundation had deposited 10,000 ETH, worth $ 42.7 million at the time of the transfer, in the Kraken Stock Exchange.
Despite this substantial movement, the foundation’s public portfolios keep around 224,800 ETH worth around 1.05 billion dollars.
Mixed reaction trails move
Various members of the community criticized the decision to sell the ETH directly, arguing that alternative financing mechanisms exist in the Ethereum ecosystem.
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These criticisms argue that the Foundation could take advantage of existing DEFI protocols instead of selling assets on centralized exchanges, which they consider as potentially harmful to market feeling.
The founder of Aavechan, Marc Zeller, expressed his succinctly disapproval, suggesting that the foundation should “simply use Aave” rather than pursuing direct sales.
Her commentary reflects a broader community feeling than the foundation should use the very defi infrastructure that it helps to support. In particular, the Foundation had previously borrowed $ 2 million in stablescoins from GHO via the Aave protocol, using ETH wrapped as guarantee.
However, all community reactions have not been negative.
Some members praised the transparency of the Foundation by announcing the sales provided before execution, contrasting this approach with organizations which make similar transactions without notice.
The employee of the Ethereum Foundation, Binji, also defended the sale by contextualizing its scale as part of a wider market activity. He noted that the 10,000 ETH represents a relatively small amount compared to the 403,800 ETH that cash companies bought during the same week.
Binji stressed that foundations of foundation are finally used to strengthen the Ethereum network by funding human resources and research initiatives that attract more developers and users on the platform, thus increasing the overall value proposition of the ecosystem.
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(Tagstotranslate) Ethereum (T) Ethereum Foundation
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