The fund, which oversees and finances the development of the Ethereum network, has disclosed its total assets, including a significant fifth of non-cryptocurrency assets.

The Ethereum Foundation (EF) has released a report detailing how their $1.6 billion hoard consists mostly of Ether (ETH) but with a staggering 18.8% non-crypto assets .

Overall, the non-profit organization EF, which manages funds for Ethereum mining, owns about 0.3% of the current total ETH supply, which is about $1.3 billion, which can be verified on Etherscan. However, non-cryptocurrency holdings make up a significant portion of $302 million.

The April 2022 report is the foundation’s first report detailing what it has in its treasury and how it allocates spending, including grants to various Ethereum-based projects. Overall, EF appears to have a very strong financial footing, having spent just $48 million in 2021.

Treasury of the Ethereum Foundation as of April 2022.
The report states that it increased its non-crypto holdings to $302 million from a previously undisclosed amount. This amount is said to offer a “greater margin of safety” to protect it from a downturn in the cryptocurrency market.

The fund did not immediately respond to a request for disclosure of details about these non-cryptocurrency assets. However, Ethereum researcher Justin Drake suggested in a tweet on Monday that non-cryptocurrency assets are just fiat holdings.

The foundation spent $21.8 million on Tier 1 (L1) research and development, the majority of its spending over the past year. This amount does not include the Customer Incentive Program (CIP), an ongoing program that rewards nine designated node operators on a fixed schedule with 39,168 ETH, or $132 million at the time of writing.

Another $9.7 million was spent on community development, $5.9 million on Ethereum as a developer platform, $5.1 million on international operations, $3.6 million on zero-knowledge -Research and Development (zk) and $1.9 million for Tier 2 (L2) Research and Development. .

Also Read: ETH Devs Implement First-Ever ‘Shadow Fork’ As PoS Tests Continue

The EF financial report comes just a few months ahead of the proposed merger, when Ethereum’s main network will switch to the Proof-of-Stake (PoS) consensus algorithm. This should significantly reduce the network’s energy consumption and carbon footprint.

Source: CoinTelegraph