In a spirited response to allegations that the Ethereum Foundation has irresponsibly sold off its ETH holdings, co-founder Vitalik Buterin firmly denied the accusations against and its contributions to the ecosystem. .
The controversy arose after an Buterin quickly turned to
Is the Ethereum Foundation Dumping ETH?
On October 26, 2024, he made as long as a clear refutation of the rumors, stating: “I haven’t sold a single ETH in the last month? The amount of ETH I own has actually increased.” When asked further about the ETH Foundation’s actions, Buterin addressed the significant costs incurred by the Foundation, which are crucial to the development and maintenance of the Ethereum network.
“The ETH Foundation pays researchers and developers who ensure that Ethereum does not lose 5 million ETH per year in proof of work, while today your fees are low and your transactions are recorded in 30 seconds instead of 1-30. minutes (EIP 1559), show some respect,” Buterin said.
Buterin further elaborated on the Foundation’s contributions, outlining a number of key initiatives that underscore its commitment to technological advancement and network security. He mentioned the development of zero-knowledge (zk) technology, which facilitates the private use of ETH, citing projects such as Railway as an example.
In addition, Buterin discussed advances in account abstraction technology, which aims to simplify user interactions with Ethereum by eliminating the need for traditional initial sentences and reducing centralized points of failure reminiscent of the Sam Bankman-Fried (SBF) incident. This innovation “will ensure that standards can safely use ETH without seed phrases *or* central SBF-style failure points,” the ETH co-founder wrote.
Buterin also highlighted the Foundation’s role in fostering a global Ethereum community through local events around the world. He noted that many of these events often downplay the Foundation’s involvement, yet play an important role in spreading knowledge and fostering collaboration between developers and enthusiasts.
Security and network reliability were other focuses of Buterin’s defense. He proudly stated that Ethereum has maintained no downtime Denial-of-Service (DoS) attacks and consensus failures since 2016. In addition, he praised the Foundation’s “various security work (internal developments and grants) that have prevented many monetary losses.”
Buterin concluded by highlighting the Foundation’s contributions to the broader Ethereum ecosystem, including “libraries of all kinds of code that you use (wallets, defi apps…).”
At the time of writing, ETH was trading at $2,521.
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