Vitalik Buterin Discloses Ethereum Foundation (EF) Spending, Including Grants to Nomic Foundation and L2BEAT

The disclosure follows recent discussions in the crypto community regarding transparency around funds transfers and coin sales from the Ethereum Foundation.

Ethereum co-founder Vitalik Buterin shared a chart on Friday, showcasing key information regarding the Ethereum Foundation’s (EF) organizational spending.

The disclosure follows recent discussions within the crypto community about the transparency of the Ethereum Foundation's fund transfers and coin sales.

Updates from @0xstark on EF spending.

The key info is in this chart.

The "new institutions" category basically means @NomicFoundation, @TheDRC_ , @l2beat, @0xPARC etc – no World Economic Forum insect protein research here!

More info has been and will be published; see thread. https://t.co/sWVfQQ5XQF pic.twitter.com/FY2EPT7Wiz

Important Ethereum Foundation Expenditure by Vitalik Buterin

The chart, compiled by Stark, shows “New Institutions” receiving the largest share of EF expenditure at 36.5%. Buterin clarified that this category includes grants to organizations like the Nomic Foundation, L2BEAT, The Decentralization Research Centre, and the 0xPARC Foundation.

According to Buterin, the EF's primary goal in establishing new organizations is to strengthen the Ethereum community over the long term.

The next highest expenditure by the EF was in the L1R&D category, which accounted for 24.9% of the total expenditure. Stark noted that this category includes grants to both external client teams and internal EF researchers.

In 2022 and 2023, internal spending was approximately 38%, while external spending was roughly 62%.

The chart further breaks down the internal spending, showing that it consists of EF teams such as Geth, Cryptography Research, Devcon, Solidity, Next Billion, and others. Stark highlighted the responsibilities of these teams, stating, “All these teams work out in the open and share info about their activities on their websites, githubs, and social channels.”

Over the past four years, the EF has consistently published reports on its funding activities, both external spending and grants. Projects that received funding in the first quarter of 2024 include Xerxis, Ethereum Bogota, Motherless Africa, ETHKL, and more.

Recent Fund Transfers from the EFThe disclosure of EF spending comes after recent large transfers to exchanges.

For example, the EF surprised the market last week by transferring 35,000 ETH to the Kraken exchange. At the current market price, the 35,000 ETH is valued at $89.8 million, making it the largest exchange move by the Foundation this year.

At the time, Ethereum Foundation member Aya Miyaguchi clarified that the ETH movement was part of their treasury management activities. Miyaguchi added that the Ethereum Foundation's strategy involved planned and gradual sales moving forward.

There have been concerns that these transfers, which were once considered a reliable signal of local market tops, are no longer useful. Stark addressed these concerns, stating that anyone can easily confirm anything they want from the EF, as the organization’s treasury is “transparently visible” on-chain.

In addition to revealing the EF's spending, Vitalik Buterin also disclosed that his annual salary at the organization is 182,000 SGD (about $139,500). This is a modest sum compared to Buterin's net worth, which was estimated at $1.5 billion by Forbes in 2022.

Ethereum Price Reaction to the NewsThe recent update on Ethereum Foundation spending has not had a significant impact on ETH price. At the time of writing, ETH had experienced a 5.3% decrease in price over the past 24 hours, trading at $2,584.

However, trading volume had surged by 28.4% to reach $14.6 billion, and the market cap stood at $310 billion.

The muted reaction in the Ethereum network was in line with a broader market decline. It also coincided with recent outflows from the Ethereum Exchange-Traded Funds (ETFs) that were launched last month.

Despite these challenges, ETH could be poised for an upward movement if a supply shock were to occur. Recently, the coin’s supply on Centralized Exchanges hit a record low, hinting at bullish mid-term momentum.

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