Vitalik Buterin explains the reasoning behind the ETH sale. ETH is struggling in a bear market.
Ethereum (ETH) co-founder Vitalik Buterin has silenced growing criticism from the community following the sale of ETH by the Ethereum Foundation.
AMBCrypto previously reported that the foundation liquidated 2,500 ETH worth over $6 million. The move sparked frustration within the community, with some members accusing Buterin of dumping ETH.
Although Buterin himself has not sold any ETH since September 12, the foundation’s sale raises concerns about the broader impact of these transactions.
Vitalik Buterin defends ETH sales
In response to the criticism, Buterin told X:
“Please show some respect.”
Source: Vitalik Buterin/X
He emphasized that this funding is essential to support Ethereum’s core development efforts, which in turn will benefit the entire community.
Buterin emphasized that these funds are being used to sustain the continued work of researchers and developers responsible for advancing Ethereum’s operations.
These efforts will make Ethereum viable and scalable by reducing the network’s reliance on proof of work, he elaborated. It also keeps transaction fees low, reduces transaction ingestion times through EIP-1559, and supports privacy enhancements such as zk-rollup technology.
In addition, Mr. Buterin pointed out that the Foundation’s budget covers other important areas. These include account abstraction technology to improve user security, hosting local Ethereum events around the world, maintaining network resiliency, and more.
He added that the foundation has achieved “zero downtime due to DoS attacks or consensus violations since 2016,” highlighting the importance of security measures funded through these sales.
Community Criticism: Why not stake ETH?
However, a recurring question within the community was why the Foundation does not simply stake its ETH holdings to cover its costs, rather than selling it and influencing market prices.
Buterin responded to these concerns and explained that the reason for avoiding staking is to prevent:
“If a contentious hard fork occurs, we will be forced to make a ‘formal choice.'”
He also shared innovative proposals currently under consideration. The idea is to provide grants where recipients have the autonomy to stake the Foundation’s ETH on their own terms, provided they are in line with ethical practices.
Another strategy suggested by the executive could involve distributing Ethereum’s legitimacy and resources among different organizations, reducing the foundation’s central influence. This step fosters a more decentralized ecosystem.
ETH roadmap and market position
This latest wave of responses from Buterin follows his consistent updates on Ethereum’s technology roadmap. He explained how the planned Merge, Surge, Scourge, Verge, and Purge phases are expected to impact Ethereum’s scalability, security, and overall efficiency. He speaks loudly about Ruka.
On the other hand, ETH’s price performance has been less impressive. After approaching $2,800 last week, the altcoin has fallen to its current price of $2,482 at the time of writing.
Read Ethereum (ETH) price prediction for 2024-2025
This reflects a 9.21% decline over the past week, according to CoinMarketCap. Although the altcoin rose 0.17% on the previous day.
Source: CoinMarketCap
The market reaction highlights the challenges the Foundation faces in balancing community expectations and Ethereum’s evolving financial ecosystem.
Next: New investors scoop up NEIRO cryptocurrency amid 15.76% drop – what’s next?
Source link
