Key takeaways
- Sun’s plan proposes to stop ETH sales to reduce selling pressure on the market.
- The plan also calls for reducing FE staff and increasing salaries for remaining employees.
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Tron blockchain founder Justin Sun on Wednesday released a plan outlining how he would manage the Ethereum Foundation (EF) and the Ethereum network if he were in charge. Sun said his plan could lead the price of ether at $10,000.
Sun’s plan calls for an immediate three-year halt on all sales of ETH by the Foundation. The Tron founder suggests covering operational costs through Defi activities such as lending ETH on platforms like Aave, staking ETH, and borrowing stablecoins.
“EF will immediately stop selling ETH for at least three years,” Sun said. “This ensures that ETH supply remains intact, aligning with our deflationary goals and boosting market confidence.”
Proposal includes implementing taxes on all Layer 2 projects, targeting $5 billion in annual revenue to use for ETH buybacks and burns. Sun also advocates substantial staff reductions at the foundation, while increasing the salaries of other employees. The goal is to create a more efficient and performance-driven organization.
Reducing node rewards and improving fee burn mechanisms are also part of the plan, which Sun believes would keep deflationary pressure on ETH’s power supply.
The plan focuses on redirecting resources to focus exclusively on Ethereum development, prioritizing scalability, security and adoption, according to Sun. He predicts that the changes could push ETH prices above $4,500 in the first week of implementation and eventually reach $10,000.
Ethereum Foundation explores Defi options
EF faces growing criticism for repeatedly selling ETH to fund operations instead of adopting staking or Challenge strategies. This has led to accusations of the EF being misaligned with the Ethereum ecosystem and neglecting Defi.
Lookonchain data shows the foundation sold 4,666 ETH – roughly $13 million, the beginning of 2024.
Addressing the growing concerns, Ethereum co-founder Vitalik Buterin explained that historical regulatory uncertainties and the need to maintain neutrality have prevented the EF from staking. However, Buterin noted that regulatory concerns have diminished and the EF is now exploring ways to minimize the problem of neutrality.
As part of a strategic push into DeFI, the foundation plans to allocate up to 50,000 ETH to a newly established multi-sig wallet. ETH will be used to participate in various Defi activities on Ethereum network, with a test transaction already completed on the lending platform Aave.
Ethereum Foundation Treasury Update
The Ethereum Foundation (@ethereumfndn) has implemented a new @on Multi-wallet 5 out of 5.
The wallet address is 0x9fc3dc011b461664c835f2527fffb1169b3c213e
A PO has been initiated to send 50,000 ETH there, but be patient; Due to signing delays,… pic.twitter.com/sikalh8rof
– hww.eth (@icebearhww) January 20, 2025
EF is undergoing a leadership restructuring to improve technical expertise, communication, execution speed and support for application developers, Buterin shared in an earlier statement. The restructuring also aims to expand the use of decentralized and privacy technology for payments and cash management while maintaining neutrality and avoiding lobbying activities.
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