- Vitalik Buterin shares his vision for a leaner Ethereum Foundation, which would help the foundation sell less ETH.
- The aim is to sell less ETH in the market to cover expenses.
- The foundation sells enough ETH to cover at least 2 years’ worth of operational expenses.
- Low ETH value has triggered more ETH sales from the Ethereum Foundation to pay staff salaries.
- High ETH sales from the foundation have been a cause of criticism from the public, as it dilutes the price of ETH.
Is Vitalik Buterin and the Ethereum Foundation Laying Off?
The Ethereum Foundation has finally decided to lay off some staff to create a lean and cost-efficient team. The information regarding the same was shared by Vitalic, who said the foundation wanted to create a smaller workforce that would operate comfortably by selling fewer Ethereum.
No clear numbers on how much workforce or how late the Ethereum team will be have been shared by Vitalik or the Ethereum Foundation.
A consistently high volume of Ethereum sales has prompted brutal criticism of the Ethereum Foundation, which has reportedly sold at least $49 million worth of Ethereum in the last month.
The Ethereum Foundation reportedly holds at least two years’ worth of payments as stablecoins. However, with the fall in Ethereum’s price, the amount required to be sold to maintain the stablecoin reserves has increased, leading to a large volume of ETH sales by the foundation.
Crypto Markets Could Dive into Serious Trouble
The liquidity shortage and the global conflict have created trouble for the crypto markets, which rely on new liquidity injected by central banks, such as the Federal Reserve. However, trade uncertainties have caused inflation, which is stopping central banks from cutting interest rates further. Last month, inflation in the US was 3.3%, at least 1.3% above the Federal Reserve’s mandate.
As a result, a rate cut, which could potentially solve the liquidity crisis, is nearly impossible, at least in the current (Q2) and the coming quarter (Q3).
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
