Ethereum Foundation 50,000 ETH Commitment has officially been allocated to strengthen the organization’s role in the decentralized finance (DeFi) sector, with roughly $162.1 million in ETH earmarked for integration into protocols like Aave.
The Foundation has established a 3-of-5 multisignature wallet through Safe (formerly Gnosis Safe), a move designed to ensure secure and transparent custody of its assets. A test transaction has already been executed on Aave, signaling the Foundation’s intention to generate passive income from its Ethereum holdings rather than rely solely on asset liquidations.
“This shift demonstrates a strategic pivot by the Ethereum Foundation toward active participation in DeFi, aligning its treasury management with community expectations,” said blockchain researcher Hsiao-Wei Wang, who recently joined the Foundation’s leadership team.
The decision follows increasing criticism of the Foundation’s prior ETH sales, which many investors argued placed unnecessary pressure on Ethereum’s price during Bitcoin’s climb to record highs. By engaging with DeFi protocols, the Foundation seeks to build a more sustainable revenue model while reinforcing Ethereum’s dominance in decentralized applications.
Approximately $150 million in ETH will be deployed into the wallet over the coming days. The Foundation currently holds over 271,000 ETH, much of which has remained dormant. This move could mark a turning point in how the organization manages its treasury amid growing competition from blockchains like Solana.
Critics have nonetheless raised questions about governance and transparency, with some suggesting leadership restructuring may be needed to align with Ethereum’s evolving priorities. Still, by embracing decentralized finance, the Foundation positions itself to both stabilize its financial operations and set an example for broader ecosystem adoption.
The Ethereum Foundation’s deeper involvement in DeFi comes at a pivotal moment as institutional and retail interest in decentralized lending and staking continues to rise. If executed effectively, the strategy could provide a steady revenue stream to support long-term development without increasing selling pressure on ETH.