Instead of selling its Ether tokens as suggested by some members within the Ethereum community to fund the Ethereum Foundation’s expenses, co-founder Vitalik Buterin mentioned that the organization is investigating strategies to alleviate any apprehensions related to staking their Ether and earning interest instead.
On January 20th, Josh Stark from the Ethereum Foundation detailed that their operations involve exchanging Ether (ETH) for stablecoins via the Ethereum’s primary network, and also using these stablecoins and ETH for transactions – on both the main network and layer-2 blockchains.
He mentioned that the organization additionally employs the mainnet for occasions such as Devcon and Devconnect, enabling them to receive online transactions directly on the blockchain.
In response, key figures within the Ethereum community proposed a plan where they would use their own Ether (ETH) for staking, rather than selling it, to meet the Ethereum Foundation’s financial needs.
Community urges Ethereum Foundation to stake ETH
According to Anthony Sassano, host of The Daily Gwei, it might be more beneficial for the Ethereum Foundation to stake a portion of their Ether holdings instead of exchanging it for stablecoins. He further suggested that they could also use Aave to obtain stablecoins by borrowing against their Ether deposits as an alternative.
In his own words, Sassano pointed out that these two options could potentially be “slightly more daring,” yet he considers them a superior choice compared to liquidating Ether (ETH) for development funding.
As a firm believer in Ethereum, I shared the same perspective. The individual expressed that the Ethereum Foundation might consider depositing approximately 1,000 Ether into the DeFi platform, Aave, to meet their operational costs.
Eric Conner, who contributed to the creation of Ethereum Improvement Proposal (EIP-1559), which introduced a deflationary burning mechanism in Ethereum, voiced criticism towards Stark’s post, expressing his view that the Ethereum Foundation’s primary function is essentially selling off or disposing of ETH.
Conner characterized the circumstance as “crazy” and proposed that the Ethereum Foundation might choose to pledge its ETH and utilize Decentralized Finance (DeFi) to cover a significant portion of its operational expenses.
Vitalik Buterin explains staking concerns for the Ethereum Foundation
Buterin, during the conversation, shared the trepidations of the foundation regarding staking. He emphasized two primary apprehensions: potential regulatory issues and the possibility of having to make decisions about controversial chain splits down the line.
Vitalik Buterin pointed out that although regulatory issues have become less of a worry compared to the past, another matter persists that might compel the Ethereum Foundation to decide on a potentially divisive hard fork in the future. However, Buterin suggested methods to alleviate this issue and mentioned that the foundation has been investigating these options.
Buterin emphasized that while regulatory issues have eased up, there’s still another point causing concern – a potential controversial hard fork decision for Ethereum in the future. Yet, he proposed ways to reduce this problem and mentioned that the foundation has been looking into these solutions.
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2025-01-20 16:23